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3 things to do when you are in dispute with your business partner

On Behalf of | Jul 3, 2023 | Business & Commercial Law

Business partnerships offer significant benefits, from access to new talent and markets to having a support system. However, you and your business partner can be in dispute due to different factors, such as a breach of contract and misunderstandings. You should handle such conflicts carefully to protect your business.

The following are three things to consider doing:

Communicate your concerns

It will help to avoid rushing to judgment. When you learn about your partner making a move that’s not in the business’s best interest, you should meet with them to communicate your concerns. It will help to allow them to explain their case. You should actively listen and ask questions respectfully.

Doing this enables you to obtain adequate information about the case and, in turn, make informed decisions. It can be risky to respond without getting the facts straight.

Reread the contract

When you conflict with your partner, you should act according to the agreement to avoid costly mistakes. For instance, it may be unlawful to ask them to leave the company even if they have breached the contract. Thus, you need to reread the agreement.

Find common ground

If the issue in question can be solved with the conflict resolution methods in your agreement, you and your partner may find common ground. You can have a neutral third party, such as a mediator help you. 

However, if the issue is major, for example, if your partner shared confidential information with a competitor, resulting in losses, you may need to consider your legal options.

Conflicts between business partners may be inevitable. If you find yourself in one, it may be time to get legal help to understand the moves to make.