Going into business is a risky move. Going into business with a partner can be even more so. Sure, having someone to share responsibilities with can have its advantages, but it can certainly have some disadvantages as well. When owning and operating a company with a partner, disputes are bound to happen. Do business owners in Massachusetts have to turn to litigation for resolution when problems arise?
Most business partnerships do start out on good terms. In smaller companies, many partners choose to have verbal understandings of what each person’s role will be rather than having formal contracts created. Having a partnership agreement written up is not something that should be avoided, though. In this type of contract, roles can be defined, compensation can be outlined and dispute resolution methods can be identified — among other things. Without a partnership agreement, when disputes arise, going to court may be unavoidable.
Is litigation a must, though? At the end of the day, there are several reasons why business partnerships may sour, including money problems, operational conflicts and intellectual property disputes. Most of these disputes can be addressed and fixed or settled through negotiations out of court. This saves everyone time and money in the long run. Whether a case goes to court depends on a number of factors, including the goals of each party.
Being at odds with a business partner can be distressing in a variety of ways. Sometimes, partners can resolve their issues and move on, and sometimes they can’t. Massachusetts residents who are in the midst of partnership disputes can help themselves by seeking assistance to resolve the matter as quickly and quietly as possible. If negotiations fail and litigation proves necessary, legal counsel can help one through it.
