Partnership disputes become seriously damaging to many construction businesses. They can be the result of assorted factors, but ultimately, the business suffers. As business lawyers, we have experience mediating and resolving partnership disputes on various levels. We help guide communication to establish agreements that address the current problems while preparing plans for the future.
The key is clear communication about all the important business issues. Our experience with partnership formation and disputes enables us to guide that communication. When entering a partnership, it is important to create and enact a solid partnership agreement based on the agreements that result from those conversations.
The partnership agreement should address the different aspects of the business, such as ownership, money, employees, and dissolution, voluntary or involuntary, of the partnership. This ensures each partners’ interests and rights are protected and agreed upon so, in face of a dispute or changing circumstances, the partners can quickly resolve the issues.
Without a written partnership agreement, the partners, their families, and their employees are taking a huge risk. We like to say that as long as everyone “can play nice in the sandbox,” the agreement is not needed. When a dispute arises, though, it is too late. Each of the partners is going to be convinced the others are demanding more than they’re entitled to and the resolution is going to be difficult and costly. Many businesses don’t survive disputes when a partnership agreement doesn’t exist.
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