Entering into business with one or more partners is often the ideal way to start an enterprise. Not only can it take away some of the associated stress, but two or more heads focused on the success of the company is better than one.
The problem with any kind of partnership is that it can lead to a business dispute. You may want to take the business in another direction while another partner wants to reinvest funds in something you do not agree with. Or maybe your partner has been slowly cutting you out of the company.
How to Handle a Business Dispute
A written agreement in the form of a partnership agreement or an operating agreement should be in place. In that agreement it should state key details such as:
- Each partner’s role, duties and obligations
- How much control each partner has
- How capital will be distributed (and what kind)
It should also detail under what circumstances a relationship between partners can be terminated.
The more detailed and thorough the agreement, the more clear the roles and responsibilities of everyone in the business will be. That is why many current and potential businesses hire a business attorney such as a business dispute attorney from Rick Dane Moore & Associates Law Firm, P.L.L.C. An attorney will ensure that partners enter into a crystal clear agreement which can save both partners frustration and thousands of dollars if an irreconcilable dispute arises in the future.
Focus on the Solution
If partners are in a dispute, they must set aside time to talk about it at a time where they will not be distracted (i.e. an after hours meeting, a chat over dinner, etc.). The goal of both partners should be to find a solution to the problem rather than attempt to win an argument or come out on top. Talk about the outcome you want to achieve and why you believe that is best for the business.
When to Hire an Attorney
If you and your business partner need to write an agreement or are unable to come to a resolution, we welcome you to contact the Rick Dane Moore & Associates Law Firm, P.L.L.C. We have over thirty years combined experience in business dispute litigation and have successfully protected the rights of business partners in the Norman, Oklahoma area.
To speak with one of our experienced business dispute attorneys today, we welcome you to call us at (405) 366-0373.