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How do you handle a partnership disagreement?

On Behalf of | Oct 22, 2021 | Commercial Litigation |

You want to expand your business and bring on a partner or two, or maybe you want to start a company together with knowledgeable partners. Either way, you could encounter partnership disagreements.

Chron offers tips for addressing conflict between business partners. Learn how to strategize your way out of a commercial conflict.


Having all the partners sit down and discuss the conflict could unknot discord and keep the business moving. Everyone should feel safe expressing their emotions during the conversation, and everyone should listen to what others say. Misperception could represent the seed of the conflict, and clarity could provide a way out.

Draft a partnership agreement

If you have yet to form a partnership, create a partnership agreement for everyone to sign. Should you ever have a conflict you cannot resolve together, the signed agreement could offer a viable way out. Another reason to use partnership agreements is they simplify dissolving business partnerships.

End the business

Depending on the conflict’s severity, it could make more sense to dissolve the business and part ways. With this option, all partners must discuss how to break up the company. For instance, everyone may feel more comfortable if one partner buys out everyone else, or you all may receive a portion of the business’s assets. If anyone wants payment for her or his percentage of the company, you may need to have an experienced professional assess your entity’s worth.

You have several roads available to address partnership disagreements. By understanding all your options, you have more ways to meet everyone’s needs and desires.