Even if you and your business partners are almost always on the same page, some disagreements are still inevitable. When a dispute turns heated, business partners need to ensure that their rights and interests are properly protected. Should you find yourself locked in a partnership dispute in Florida, it is imperative that you contact an experienced Clearwater partnership dispute attorney as soon as possible.
Four Common Causes of Partnership Disputes
- Breach of Fiduciary Duty
Business partners owe a fiduciary duty to each other. This means that they have a legal responsibility always to act in the best interests of the business and of their partners. For example, a business partner must refrain from using their privileged position to benefit themselves personally at the expense of the business.
- Disagreements Over the Use Funds or Other Business Resources
Sometimes, Clearwater business partners do not see eye to eye on how to spend money or how to use the vital resources of the business. Ideally, this type of dispute can be resolved without causing any damage to the underlying business. This is where a strong partnership agreement will be very useful. Though, in some cases, legal action may be required.
- Confusion of Authority
One of the biggest problems that business partners run into is having confusion over exactly who has authority to make particular decisions. Disputes over decision-making authority can be especially difficult to resolve, and legal assistance is often required in these cases.
- Disputes Over Business Objectives or Future Opportunities
In some cases, partnership disputes arise over what is to happen to the business in the future. Partners do not always agree on what should be the objectives of their company or on which type of business opportunities should be pursued. If this type of partnership dispute cannot be resolved informally, you may need to get a lawyer involved.
The Importance of a Well-Drafted Partnership Agreement
Ultimately, you will want to deal with partnership disputes before they actually arise in the first place. The best way to do this is to have the right structure in place. All Florida partnerships should be supported by a carefully drafted partnership agreement. Operating without a customized partnership agreement that has been drafted by a qualified attorney is far too risky. A partnership agreement always needs to be drafted in a manner so that it addresses the specific needs of the business in question. A partnership agreement should clearly address the following key issues:
- The legal rights and responsibilities of each partner
- The financial responsibilities of the partners;
- A clear structure for making difficult decisions;
- A process for resolving disagreements; and
- Provisions for dissolving the partnership.
Contact Our Clearwater Partnership Dispute Lawyers Today
At Clearwater Business Law, our top-rated business law team has extensive experience handling all aspects of partnership disputes. To request a fully confidential review of your case, please call us today at (727) 314-3867 or reach out to us directly online. We represent clients in partnership disputes throughout the Florida Suncoast, including in Tampa Bay, St. Petersburg and Largo.