A business partnership is where two or more parties come together to conduct business with one another. This can be a partnership between two or more persons, or between multiple business entities. In some cases, the partnership is formed for a specific business aim. For instance, the parties might be trying to:
- Create or market a specific product that combines aspects of both businesses
- Expand their base of customers and clients
- Conduct research together regarding market trends
- Expand their profit margins
Most partnerships will terminate once the aims are reached. Partnerships can also terminate if one partner becomes unable to continue with the business activities. The terms of the partnership are often spelled out and agreed upon in a business partnership agreement. These terms may also be governed by certain state statutes.
What Are Some Types of Business Partnership Disputes?
Some common types of business partnership disputes may include:
- Breach of business contract
- Violating a non-compete clause or similar contract term
- Unauthorized disclosure of confidential company information
- Violations related to insider trading
- Breach of the business partnership agreement itself
Business partnership disputes can also involve various other legal issues. For instance, there may be disputes as to which partner can be held liable for a product liability claim or for a customer’s injury. These types of disputes may often require extensive legal research to resolve.
How Are Business Partnership Disputes Resolved?
Business partnership disputes can often lead to a lawsuit. This may be necessary to determine which party is at fault in the disagreement. The courts may need to review the business partnership agreement to determine the rights and responsibilities of each party. A monetary damages award may be available for the non-breaching party. This will help cover losses caused by the other party’s actions. In some cases, the input of an expert witness may be required to help determine liability or other issues.
Do I Need a Lawyer for Help with Business Partnership Disputes??
Business partnerships can often involve some very complex legal disputes. It may be necessary to contact a business lawyer if you need assistance resolving any type of business partnership issue. Your attorney can provide you with legal representation during the lawsuit. Also, if you need additional research on your state’s laws, your attorney can help inform you of the business rules in your region.