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What causes business partner disputes? 

On Behalf of | Aug 7, 2023 | Business Law |

There are several ways to set up and run a company, and many business owners opt to form a partnership. A business partnership can be very useful because obligations can be shared. 

That being said, not all business partnerships run smoothly all of the time, and disputes can arise. A partnership dispute can be tricky to resolve, and it can ultimately end up costing the business a lot of money. Identifying some of the more common causes of business disputes could help you to implement prevention strategies.

Outlined below are some of the more common causes of partnership disputes

Different visions 

Business partners usually have different strengths and weaknesses. However, their key objectives for the company should be aligned. When key goals and objectives differ, conflict can arise. For example, if one partner wants to expand the company quickly, but the other is content with how things are, this could result in tension.

Uneven workloads 

If partners enter into an agreement on a 50/50 basis, then the workload of each party should reflect this. The role and responsibilities of each partner should be outlined in a legal agreement and signed off on. If one partner feels like the other is not pulling their weight, then this is very likely to lead to a disagreement. 

Objectives, roles, responsibilities and salaries are just some of the more notable causes of partnership disputes. There are several others. One way that you can prevent and resolve disputes is to implement partnership agreements. If you’re struggling to resolve a dispute internally, then it may be time to start thinking about your legal options. 

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