3 Ways to Avoid Partnership Disputes

One of the reasons why you should consider a partnership contract as a sole trader is that a different perspective will help you see matters. Having multiple approaches to one problem and people to discuss them with can help you find the best one. However, this does open you up to partnership disputes. 

Partnership dispute occurs when business partners differ on how to proceed with ongoing dealings. Wembley Solicitors are expert immigration, personal injury claim, and divorce solicitors in Wembley, and our litigation team has plenty of experience settling all sorts of legal matters.

Check out our blog post about the most common reasons for discord amongst partners. While your commercial endeavours will undoubtedly involve legal records of all agreements, contracts don’t prevent differences of opinion. So how can contract disputes be avoided?

Regular Check-Ins

Even when certain things have been decided previously, changing circumstances can lead to one or more partners refusing to proceed as agreed. Common reasons for refusal, as opposed to alternate suggestions, are that these partners don’t feel that their preferences have a place in the decision-making process.

Regularly holding meetings to assess partners’ contentment with how things are happening, including day-to-day business, can prevent this. Otherwise, individuals can feel like they’ve been overruled before they’ve spoken up at all. It also helps to agree at the start of the partnership to revise contracts at regular intervals.

Since all partners will then have agreed upon legal responsibilities to comply with, a dispute can be handled in a way that’s less likely to impact business activity.

Put All Ownership Agreements To Paper

The first thing to do when establishing your partnership is to consult a solicitor about who the assets belong to and how they’ll be distributed if the partnership ends.

It’s important to consult a legal expert because their experience with commercial disputes will give them the foresight they need to implement preventive measures. They’ll also give you the essential facts you need to know to keep from agreeing to anything that doesn’t favour you.

Discuss The Distribution of Profits With Legal Counsel

As businesses expand, profits and revenue expand with it. One of the major causes of a dispute is that partners are receiving uneven shares. One partner may claim that certain revenue was generated mainly due to their investments, and they are therefore entitled to a bigger chunk of it.

Legal experts can help you think ahead as you draft contracts.

Wembley Solicitors has an expert team of solicitors who can provide mediation or litigation, depending on the client’s needs. We can help you avoid turmoil in your commercial enterprises by helping you rule out loan agreement disputes and boundary disputes and handle things like debt recovery claims. Our criminal solicitors can also help you understand how to protect your brand from intellectual property theft.

If you need representation for business or personal reasons, contact us to speak to divorce solicitors, immigration solicitors, and landlord solicitors. Send an email to info@wembleysolicitors.com, and we’ll get back to you quickly as we can.