In the world of business, joining forces with a partner may be extremely beneficial to your company. When you form a partnership with another individual or another company, you are able to combine ideas, technology and finances with another entity. In some cases, this may give your business just what it needs to gain a competitive edge or excel in a market heavy with competition. There is, however, the chance that you may get into a dispute with your partner, which could challenge the success of your company.
There are several types of disputes that can break out in a partnership. Some of the most common include the following:
Misuse of trade secrets, which involves the leaking of sensitive information that could give competitors an advantage.
Breach of contract occurs when part of an oral or written agreement is broken by one of the partners.
Unbalanced workload occurs when one partner takes on more of the responsibilities than the other partner, causing a dispute.
Disputes over who is responsible for overseeing what activities.
Conflicts over resources, such as where to get the resources, how to finance them and how to use them.
When a partnership no longer benefits the company, it may be time to look at your options regarding the repair or dissolution of the partnership. Partnership disputes can lead to problems within the company and may lead to the downfall of your company if the matter is not handled properly.
This information is intended to educate and should not be taken as legal advice.