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Can you prevent partner disputes from happening?

On Behalf of | May 4, 2019 | Commercial Litigation, Firm News |

Operating a business in Massachusetts requires a lot of personal and professional strength and determination, but running your organization can be easier with a loyal partner sharing in the responsibilities with you. However, one risk of being part of such a relationship is the chance that you or your partner will disagree on how to do things and ultimately have to part ways. While this may not sound too serious at first thought, a crumbling partnership can put significant strain on company operations and in some cases be what forces a company to close indefinitely. 

While it may not be pleasant to consider the thought that you or your partner may disagree on certain factors, it is imperative that both of you are upfront about your concerns and committed to putting measures in place to protect your company’s assets in the case there is tension. According to Forbes, from the onset of your partnership, openly discuss worst-case scenarios involving the business relationship and thoroughly examine your options for resolving disagreements before they affect your company’s operations. 

One way to accomplish this objective is to refrain from establishing a partnership at all until you have implemented a written agreement that clearly outlines each other’s responsibilities and how the relationship will function. Parameters should be put in place that addresses disciplinary action, as well as asset and debt distribution. A well-written contract can provide invaluable protection to you and your partner and serve as a point of reference should a disagreement arise about how an action should be completed. 

The information in this article is intended for educational purposes only and should not be taken as legal advice.