How to handle partnership disputes

On Behalf of | Dec 26, 2017 | Business Law & Litigation |

Disputes are not always avoidable between business partners in Terre Haute. What was once an amicable arrangement may become a contentious relationship that could shake up the very foundation of your company. Before you start looking for ways to cut your business partner out of the equation, you should keep in mind that disputes are sometimes necessary to ensure the integrity of your business.

How you handle conflicts can affect your company’s success and longevity. Here are some strategies for you to consider on business dispute resolutions.

Be clear on the issues

It is not uncommon for people to misunderstand each other and take a confrontational stance to their issues. Before you say or do anything, make sure you understand what the dispute is about. It is possible that you or your partner misunderstood or misheard something.

Once you have clarified the issues, consider your options. Think about potential solutions and how they can help you to avoid similar disputes in the future. Make a list of the pros and cons of each possible solution so you can better assess which options are right for the situation.

Examine your contracts

You should have a shareholder or partnership agreement in place that you can refer to when disputes and conflicts arise. If you do not, now might be a good time for you to create one and review it with your partners after you settle things.

Decide if mediation or litigation is the answer

Sometimes disputes persist after the above tactics have been used. If none of them help you to resolve your issues, you might need to decide if you are better off negotiating or letting the dispute go into litigation. If you feel the relationship between you and your partner is worth saving, you might find it beneficial and cost-effective to proceed with mediation.

When disputes arise, it is best not to let them fester. Address the issues head on and consider every possibility to help preserve the relationship and your company’s viability.