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Causes and effects of a business partnership dispute

On Behalf of | Jun 17, 2022 | Business & Commercial Litigation

Business partners in Massachusetts have contractual agreements to prevent disputes. But disagreements could occur more often than anyone predicts. An argument that is serious enough could threaten the success of your business. Business litigation is the most serious form of legal action taken against a partner.

Breach of contract

Breach of contract is the most common complaint among business partners. This disagreement occurs when one or more parties fails to fulfill their duties as outlined in the contract. A breach could be failing to show up to work on time, failing to hire qualified workers or revealing confidential information. The contract is legally binding and could result in a lawsuit being filed against the breaching party.


Many business partnerships have been dissolved for illegal or unethical behaviors. Fraud consists of different types of activities, such as embezzling, identity theft and credit card fraud. The theft of intellectual property occurs when one business owner or partner steals the ideas or inventions of another.

Resolutions for partnership disputes

The main resolution for a dispute between partners is the filing of a lawsuit., although they could go through an arbitration or mediation. Business litigation allows plaintiffs to publicize their cases and obtain the highest amounts of compensatory and punitive damages.

A contract is made to prevent all types of business partnership disputes. A professional disagreement varies from a breach of contract to IP theft. A contract ensures that every professional is obligated by law to fulfill his or her duties or face a potential lawsuit. Litigation is the final resolution of a business disagreement that interferes with the business’s normal operations.