Do Partnership Agreements Help Resolve Business Disputes?
Partnership agreements can help to resolve partnership disputes and can provide assistance in making sure such disputes do not arise in the first place. A partnership agreement is one of the most important documents you need to create if you are beginning a business and will be working with others to run your company.
Brown & Charbonneau, LLP can provide assistance with the creation of a partnership agreement that includes the clauses and provisions you need to help prevent business disputes from happening.
Our Californiabbusiness law attorneys understand when and why disputes arise among co-owners of a company and we know how to help you to negotiate and draft a contract that will significantly reduce the potential for disagreement. We can also provide you with invaluable advice on what to do when a dispute has arisen. Our goal is a timely resolution of your dispute, using the contract you have created. At every stage, we are focused on protecting your interest and the interests of your company. Give us a call today to learn more.
How Can Partnership Agreements Help Prevent Partnership Disputes?
Partnership agreements can help in many important ways to prevent disputes among business partners. These agreements can help you to avoid conflict by:
- Making each party’s responsibilities clear. The contract should divide responsibility for different aspects of operations and different decisions which will be made in the course of business.
- Making each partner’s rights clear. It should be clear what each partner is entitled to as far as salary, distribution of profits, and other benefits. Many conflicts arise because of concerns of money or equality among partners.
- Defining the scope of business operations. You should have a clear plan for what you want your business to do so you can refer to your partnership agreement if there is conflict about what direction you want to take the company.
- Establishing a process for selling or retiring from the business for any partner. You want to ensure the business does not fall into the wrong hands if any partner must leave. You also want it to be clear what each partner is entitled to as a result of their investment in the company.
- Establishing a framework for decision making within the business. Your partnership agreement should outline who has authority over what decisions. Ideally, responsibility should be divided so there is always someone with the final word over a given business issue.
- Setting forth a protocol for resolving conflict: Conflicts can arise even with the strongest partnership agreements. Your agreement should outline a process for resolving any disagreements in an amicable and efficient manner.
The U.S. Small Business Administration has a sample partnership agreement which you can review in order to see how this type of contract works. However, you should get proper legal advice from an Irvine partnership disputes lawyer to make sure your agreement is comprehensive and appropriate to your specific business situation.
How Can Partnership Agreements Help Resolve Partnership Disputes?
While the most important goal for a partnership agreement is to prevent disputes from arising, these agreements can also help you to resolve conflicts which inevitably occur.
Whenever a partnership dispute arises, you and your partner can look to the partnership agreements, employment agreements, and other legal documents you have created. These documents should help you to understand exactly what each person’s obligations are, who has decision-making authority, and how a dispute can be resolved.
If you have difficulty interpreting the clauses of a partnership agreement that apply or if you have concerns about how the agreement should resolve your particular dispute, an experienced partnership disputes lawyer can provide you with assistance throughout the dispute resolution process.
How a California Partnership Disputes Lawyer Help You
Your investment in your business is likely one of the most substantial and important investments you will make over your lifetime. You do not want your investment undermined because of problems with your co-owners. Let Brown & Charbonneau, LLP provide you with help in making sure your partnership agreement reduces the possibility a dispute will arise.
If you have already become involved in a disagreement with your partners, our legal team can also help you to explore the different ways in which your partnership agreement can help you to solve the problem. Give our expert business litigation lawyers a call today at 866-237-8129 or contact us online to find out about the ways in which we can help your company to resolve disputes in a timely manner so business operations can continue without problem.