When you are running a business, it seems that there are not enough hours in the day to accomplish everything that you need to do. If you're accused of a partnership agreement breach you may feel confused, threatened and angry all at the same time.
Businesses small and large go through breach of partnership litigation each year in part because the enterprise has an inadequate or non-existent partnership agreement. Here are some ways to handle your situation if someone claims you compromised a partnership agreement.
No Written Agreement?
What if you do not have a written partnership agreement and your partner accuses you of not paying your share of the debt associated with your business startup? It is evident that each partner in the enterprise has differing expectations that were not spelled out at the beginning of the venture.
Try Negotiation Or Mediation
Even if you do not have a written contract for your business arrangement, negotiation or mediation is a quicker and less expensive alternative to going to court. If you do have a written agreement, but it is unclear, hopefully, the dispute is just a misunderstanding that can be ironed out with the help of legal counsel.
Documentation Is Your Friend
In the case of negotiation, mediation or court litigation, any documentation you can gather about how much money and time you have spent on the business can be of help in the ensuing legal interventions. Any information about the formation of the business in the form of meeting notes, receipts and employment documentation could be the pieces of information that make a positive difference in the negotiation process.
Next Time, Start With A Clear Contract
The next time you enter into a business partnership, place a priority on crafting a well-built partnership agreement. A well-written partnership contract facilitated by legal counsel spells out what each partner's responsibilities are and the consequences of not fulfilling these functions.