7 Steps to Settle Partnership Disputes

1. 7 Steps to Settle Partnership Disputes Disagreements will inevitably arise in business partnerships. However, what matters most is that these disagreements are settled in a timely, civil and fair manner. Our litigation support services in Alberta have helped countless business owners resolve their business partner disagreements as well as other business-related conflicts. Let’s take a quick look at the best ways to settle such conflicts in a business partnership: ●Adopt a Partnership Agreement A partnership agreement just might be the best way to settle your business partner's disagreement. Partnership agreements empower business partners to settle potential disputes before the point at which they arise. This approach is optimal, as it is proactive and created when all relevant parties are on amicable terms. This civil approach is quite the contrast to the drama surrounding most disagreements as they develop and also after each side digs in. However, it is a mistake to craft a partnership agreement in a DIY manner. ●Roles and Responsibilities Ideally, the agreement between you and a fellow business partner will define each party’s unique roles and responsibilities. All the details should be written out, ranging

2. from which party makes specific capital contributions to the amounts of those contributions, which party has the final say over certain decisions, the division of profits, and so on. If there is intellectual property related to the business, the parties that own that intellectual property must be identified. The partnership must also have a license to use the intellectual property. Keep in mind, accounting is one of the top causes of division between business partners. Each partner should have access to information about expenditures, revenue, and all other relevant financial information. ●Worst-case Scenarios The best business partnership agreements take the worst-case scenario into account at the time they are formulated. These agreements should detail exactly what will occur if one of the business partners becomes incapacitated or passes away. Furthermore, the agreement should detail what will occur should one partner attempt to buy out the other partner. If there is a heated disagreement throughout the business's evolution if the partnership is to be dissolved and other potential scenarios should all be specifically addressed in the agreement so there is minimal if any, room for interpretation of the language. ●Negotiate a Compromise If a problem arises, that is not covered in the business partnership agreement, or if there is simply a lack of such a partnership to start with, there is still the potential to negotiate with the other party. Consider a mutually beneficial compromise spearheaded by your legal practitioner and you will spend less time worrying about the disagreement and more time focusing on your work, improving your value offering, and adding to your bottom line. ●Mediation If negotiating does not work, agreeing to mediation might prove optimal. Informal mediation is worth consideration. Trust in an experienced, unbiased arbiter has the potential to result in an outcome that satisfies both parties. Keep in mind, the arbiter’s decision will prove legally binding, meaning you must adhere to it. ●Partnership to Dissolve If an agreement cannot be reached, a partnership to dissolve is worth your consideration. However, dissolving a partnership has the potential to prove to challenge as it necessitates negotiation, potential mediation, and possibly even litigation.

3. ●Litigation Litigation is the last possible resort. Our legal team will consider all potential options to avoid litigation, as it has the potential to prove time-consuming, costly, and frustrating. Ideally, you will meet with our legal team before deciding to take any type of legal action. Let us review the facts of your disagreement and determine whether litigation is the best route or if an alternative path might prove more prudent. Contact Cerberus Consulting Today!!! Our business consultants are at your service. From company valuations to litigation support, commercial real estate guidance, business restructuring, and beyond, we can help your business. Reach out to us today to learn more about our litigation support services in Alberta and schedule an initial appointment. You can contact us by dialing 587-400-3858 or by filling out our convenient online contact form. .