What Happens When Partners Disagree?
Partnership disputes can be among the most challenging because each person has their livelihood on the line. Partners may be dug into their position and have their own desired way of doing things. The best thing is to avoid litigation, but it is a definite possibility.
If you find yourself in a disagreement that cannot be resolved, you should attempt to mediate the dispute with the other partner or partners. Try to talk through a neutral third party or through your lawyers to help lower the tension and find common ground. Many disputes can be resolved when the parties are able to take a step back from the brink.
Always Check the Partnership Agreement
If you cannot settle the dispute, the partnership agreement will dictate what happens when there are disagreements. There may be procedures to follow. The difficulty happens when you are the minority partner. Even if you are the majority partner, you still owe duties to minority partners and must think twice before strong-arming them or freezing them out. You could be vulnerable to a lawsuit.
The partnership could be dissolved if it is unable to function as the result of a disagreement. Alternatively, one partner may have the right or ability to buy out the other one. This should be the last resort only if the parties simply cannot agree. If there is a forced buyout, there is often a dispute about the price, even if the partnership agreement provides guidance about how the partnership share is to be valued.
Call a Boca Raton Partnership Agreement Attorney
If you find yourself in a disagreement with a partner, you should contact an attorney to make sure that your legal rights and financial interests are protected. Contact the attorneys at Rubino Findley PLLC online or call us at 561.220.8464 to schedule a consultation.