How to Write a Business Contract: Everything You Need to Know
84% of small businesses manage contracts without an attorney’s help. Writing a business contract can be overwhelming, but you should take some key steps to ensure the agreement is sound
Why You Should Hire a Lawyer During a Partnership Dispute
Up to 70% of business partnerships fail. If you’re dealing with partnership issues, it could impact your company’s future. Instead of letting your business crumble, consider hiring a partnership dispute lawyer.
Not sure if you need a lawyer to help you navigate the situation? Here are seven reasons you should contact a lawyer during a dispute. Recognizing these scenarios could help you act before your business fails.
Read on to discover when you need to hire a lawyer for partnership disputes today.
1. To Avoid Disputes
Most people think of hiring a partnership dispute lawyer after an argument. Instead, consider hiring a lawyer before disputes can occur. In fact, you might want to contact a lawyer before you even start your business.
When building a business, you’ll require a lawyer’s experience and expertise in a number of areas. For example, they can help draft contracts and other documents you’ll need to establish your business.
Consider seeking legal advice before you officially start your business. An experienced lawyer could help you avoid future disputes.
For example, they can help you draft a detailed partnership agreement. You can explicitly outline how you want to run your business. You can also establish methods for avoiding disputes before they begin.
Your partnership lawyer can also help you with:
- Selecting a business name
- Filing government documents
- Registering intellectual property
As they help you with each phase of building your business, you can get started on the best possible foot. Meanwhile, you’ll have peace of mind knowing a plan is in place if disputes arise.
2. Enforcing Terms of a Contract
You might require a partnership dispute attorney if a breach of contract occurs. A lawyer can step in if you want to sue a business partner to enforce the terms of a contract.
Remember, your lawyer can help you draft any necessary contracts before you establish your business. These contracts might include:
- Partnership agreements
- Nondisclosure agreements
- Noncompete agreements
- Employment agreements
- Operating agreements
You might need to sue your partner to compel them to comply with the original agreement. Otherwise, you can sue them to recover damages.
For example, perhaps you have a partnership agreement that requires you to sign contracts encumbering partnership assets. Your partner might use your business equipment with collateral when taking out a loan. If they fail to consult you, you can use them for breach of contract if this action damages your business.
If you think your partner breached a contract, contact a dispute lawyer to handle the situation for you.
3. Misuse of Partnership Assets
About 20% of small businesses fail within their first year. By the end of a decade, only 30% of business remain. Your partner’s actions could impact your success.
Some people fail to keep funds and assets separate from their business. For example, a partner might cover a personal bill with the company credit card. They could begin draining your company of cash flow.
As a result, you might struggle to develop a profit or fulfill obligations to investors.
If your partner has started using your business assets for their own gain, you need to protect your company. A lawyer can help you understand your legal options. You can determine the best course of action before a partner damages your bottom line.
4. Breach of Fiduciary Duty
Your partner owes you fiduciary duties like care and loyalty to act within the best interests of your partnership. If they breach a fiduciary of duty, it could hurt your business. For example, they might:
- Conceal information about the business
- Carelessly expose your partnership to liability
- Expose trade secrets
- Violate copyrights or trademarks
- Fail to disclose a conflict of interest
- Fail to manage the business with adequate care
- Take opportunities for their own gain
They can also breach a fiduciary of duty by misusing funds or engaging in illegal behavior. If these situations sound familiar, you can sue for any damages.
5. Operational Disputes
You and your business might not see eye to eye about how you should run your business. For example, you might disagree about:
- Which business objectives to prioritize
- How to use company resources
- How to use business profits
- Which opportunities to take
- Who has the authority to make decisions
A partnership agreement can help you avoid these issues before they occur. If you don’t have an agreement in place, call a partnership dispute lawyer. They can help you resolve these disagreements.
You can also create or update your partnership agreement to resolve future disputes.
Then, you can find more effective ways to run your business without experiencing problems in the future.
6. Partner Conduct
Sometimes, how a person acts outside of work can impact your business. For example, a partner might commit a crime. They can hurt your brand’s reputation and the goodwill of your business.
They could put business assets at risk if they commit fraud or file for bankruptcy.
If you’re concerned about your partner’s behavior, contact an attorney. They’ll ensure these behaviors don’t come back to haunt you. They could keep your partner’s actions from hurting your business further.
With their help, you can find ways to protect your company’s future.
7. Dissolving Partnerships
Remember, partnership disputes can end businesses. Sometimes, it’s not enough to resolve the initial problem. Instead, you might find you can no longer continue your partnership.
Perhaps you find the initial purpose for your partnership has already been fulfilled. Maybe a partner’s circumstances have changed. For example, a partner could retire, move, or even pass away.
You might decide you want to dissolve your partnership, rather than resolve the issue. Your partnership dispute attorney can help. They’ll make sure your assets and liabilities are all fairly distributed.
Their expertise will ensure the partnership’s resolution doesn’t negatively impact your company, too.
Better for Businesses: 7 Reasons to Hire a Partnership Dispute Lawyer
Don’t try to handle a business dispute alone. Instead, consider hiring a partnership dispute disorder. With their experience and expertise, you can protect your business by finding the best resolutions.
Make a choice with your business in mind by contacting a lawyer today.
Eager to get started? We’re here to help set your business up for success.
Contact our team today to learn more.
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