Partnership Disputes

Partnership Disputes


Common Business Partnership Disputes

In a business, a partnership consists of two or more participants. Going into business with a partner can be advantageous, and it is very frequent among startups and professional service businesses. Unfortunately, a disagreement will almost certainly arise at some point. Even close friends and family members might get into business problems. Some disagreements are so severe that the partnership dissolves.


When starting a new collaboration, it’s critical to do your homework. You should also consult with a knowledgeable Florida business dispute lawyer to ensure that you have a well-drafted partnership agreement in place. In a partnership dispute, the quality of your agreement is one of your finest defenses.

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Partnership Disputes: Common Types

Here are some of the more prevalent business partnership disagreements:

  • Breach of Contract:

One of the most prevalent problems in a partnership is a breach of contract. Between partners, you can have both verbal and written agreements, which is why having a professional draft your partnership agreement is so crucial.

  • Misuse of Trade Secrets:

Many organizations rely on secret information to give them a competitive advantage. This can include confidential information about technology, formulas, and processes, among other things. Misuse of trade secrets occurs when someone uses this information without permission or after they have left.

  • Breach of Fiduciary Duty:

Partners rely on one another to maintain their promises to grow the business and prioritize the requirements of the company. A disagreement will arise if one of the partners violates their fiduciary duties.

  • Failure to Distribute Work Loads Fairly:

Partnerships might have quiet partners who simply provide finances, or they can have all partners participating in day-to-day operations. Failure to distribute the task equally could lead to a conflict between partners.

  • Disputes Over Resource Utilization:

Disputes over the use of financial resources might emerge. Perhaps one of the partners wants to buy new equipment for the company, but the other partners don’t think it’s necessary.

  • Failure to Define Authority:

You must understand who has authority and for what purposes. Failure to identify who is in charge of what will almost certainly result in a slew of disagreements as your company expands.


There are a plethora of additional forms of issues that may emerge and necessitate legal research. For example, there could be a disagreement about who is responsible for product liability claims or reimbursing a customer’s injury-related damages.

How to Avoid Disputes in Partnerships


Partnership conflicts aren’t fully avoidable. You and your partner may be able to shield your business relationship from major problems if you take precautions ahead of time. You can take the following steps to avoid significant partnership disputes:


  • Making a written agreement ahead of time –

Specifications such as responsibilities of power, tasks, liabilities, capital contributions, and termination circumstances should be stated in this formal agreement.

  • Thorough discussions in the event of a disagreement –

In a dispute, communication is crucial. If you and your partner are having a disagreement, you may be able to fix it through conversation. Litigation does not have to be the initial step in every case.

  • Using mediation as a substitute for litigation –

Mediation is a process that involves talking with a neutral third party. If you don’t want to go to trial but can’t come up with a solution on your own, business litigation can help you and your partner reach an agreement.

When a Partnership Dispute Arises, What Should You Do?


It’s critical to call an experienced business litigation attorney as soon as a problem begins. An attorney can look over your partnership documents to see whether you have any conflict resolution procedures in place and what your choices are. Your lawyer can also assist you in determining the various dispute resolution options open to you. Arbitration and mediation are examples of alternative dispute resolution (ADR).

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