Going into business with a partner has its advantages and disadvantages. The one certainty about a partnership, like any relationship, is that commercial disputes are inevitable. And in some cases, disputes between business partners can escalate into a conflict that threatens the viability of a partnership. A partner can either be a co-worker, employee of a company or a pair of people engaged together in the same activity.
– What precautions should you take?
– What procedures should you follow?
– Which obstacles do you have to eliminate?
– When all these questions are settled, how can you be sure that your partnership is well managed to avoid and resolve partnership disputes?
You cannot improvise when it comes to finding a good partner, setting objectives, negotiating contracts, and finally setting up cooperation. Here are 5 ways to do that:
Engage legal counsel to help you prepare your operating and partnership agreements. You need to ensure that the partnership documents address all aspects of operations. Any operating agreements and other important decisions between the partners should be documented and signed so that you can always refer to the written agreement when a conflict is about to arise.
Take the time to sit down and have a calm and reasonable conversation about the problem. You don’t need to win the argument, you need to focus on the solution and what is best for the business if you want to maintain the relationship in the long term.
In some cases, a neutral third party can be the key to resolving a problem. It can help to have a clearer view, a quicker resolution, and an outcome that is right for both parties. A mediator can also ensure that emotions are kept out of the discussion.
Do a little exercise in adjusting your expectations so that you don’t get frustrated if the situation doesn’t develop as you would like it to.
Different points of view are just that, differences. You have to find a middle ground to adjust them and solve the problem. To do this, you have to go through a process of dialogue; the solution does not come immediately. Don’t get frustrated if it doesn’t come out the first time, because that will increase the anger and make it harder to handle.
Reflect on how the other person experiences the situation, try to see it from their perspective. Do a little empathy exercise to put yourself in the other person’s shoes, to understand why perhaps the other partner is acting this way. You will probably find in the exercise that the other person has no intention of hurting you, but that he or she interprets the situation in a different way.
Remember that everyone proposes different solutions, marked by their culture, their childhood belief models, their past experiences…. This makes them draw conclusions and values that are different from yours, and they do not see the problem in the same way as you do.
When the problem seems to be heading for a bad outcome, a corporate litigation lawyer can help you understand your rights and obligations, and the same for your partner.
Having a dispute with your business partner can have a significant impact on both your business and your personal life. To avoid disputes, you should take proactive steps from the outset. Addressing and resolving conflicts as soon as they occur will preserve your relationship and business effectiveness.
You should contact a corporate litigation lawyer for a partnership dispute resolution if you cannot resolve your differences and all else fails. Here at Mishoura, we help connect your business to the best corporate litigation lawyers closest to you.
