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Which parties can you be in disputes with?

When you run a business, you may be in dispute with any involved party. Despite observing the required measures to be a reliable party, you may still conflict with some people and potentially face a lawsuit.  

This guide discusses four parties you can dispute with:

Employees 

Your employees have roles to fulfill, and you have duties towards them. If an employee breaches their employment contract, disputes may arise. For instance, if they fail to do their work or when they share confidential information with an outside party.

Conversely, if an employee believes you are not observing your duties, such as paying them as agreed or providing equal opportunities, they may also start a dispute, which can lead to costly lawsuits.

Partners

Business partners don’t need to share views. You and your partner can have different perspectives but should be on the same page concerning business direction or growth. Nonetheless, disputes can arise due to misunderstandings, breach of contract, and personal interests. 

For example, when your partner makes a crucial decision in a department that they lack authority over or when they exit the business against the agreed terms.

Shareholders

When your business becomes established enough to have shareholders, you may find yourself in dispute with them. Common reasons for this may include: 

  • Disagreements over voting rights 
  • Lack of respect 
  • Miscommunication 
  • Not accomplishing fiduciary duty 
  • Breach of the shareholder agreement

Since you may have several shareholders in your company, disputes with them can be complicated.

Customers

Your clients may also conflict with you. For instance, if they receive a substandard service or product. Or when they are involved in an accident on the premises.

If you conflict with any of the parties discussed above, it will help to get legal guidance to protect your business.