A Lawyer Can Help Resolve Partnership Disputes
A partnership is a legal business structure, designed that way for specific advantages. Partners have agreed to respect rules and they have a fiduciary responsibility to act in a manner that protects and preserves the partnership. When one partner deviates from their commitment to the organization, that move can not only harm the business operations, it could also put other partners at risk for legal actions by other entities.
Partnership Dispute Resolution
Putting an end to partnership disputes is essential for continuing success of the entity. Some disputes arise when one or more partners no longer wish to participate and dissolution would be a good answer. Litigation may also arise from some issues if there is illegal or unethical activity by a partner.
Situations that cause partnership disputes include:
- Financial disagreements - over debts, payments, acquisitions;
- Tax issues;
- Asset division;
- Breach of contract;
- Embezzlement - stealing from partnership;
- Trade Secrets;
- Using partnership resources for personal gain; and
- Dissolution/partnership breakups
Legal Services for Partnership Disputes
The main reason you need legal services in a partnership dispute is because there are legal responsibilities placed upon each participant. Any violation or misuse of those responsibilities may lead to litigation, in which case you need legal representation.
A lawyer can offer several resolution options:
- Mediation; or
Arbitration and Mediation are the preferred legal tools your attorney can use to help you resolve partnership disputes in a cost-efficient manner. All parties have an opportunity to come to a new agreement that still meets Texas partnership laws. If dissolution is the end result, that also must meet specific regulations to be valid.
Disputes often arise during the normal course of business activities, even among the best of friends. When you bring your lawyer on board early on, you and your partnership benefit the most, as you save time and money and maintain valid legal status for the partnership.
Call us today for a free consultation if you have concerns about partnership disputes.