Business partners develop contracts to protect their individual interests as well as the interests of the business endeavor in which they are involved. While individuals may go into a partnership with a mutually beneficial contract, it is not uncommon for parties to break the grounds of a contract or fail to fulfill their duties as laid out in the agreements.
There a few viable options should you and a partner come into this type of contract dispute, including the following:
- You may cure the breach – This involves notifying your partner, in writing, that they have breached your contract. Such a notification may lead to negotiations or a meeting that may resolve a misunderstanding.
- Taking legal action – A successful lawsuit may enforce your partner into performing their side of the agreement or nullifying the contract. You may also sue for damages. Damages in a breach of contract lawsuit include: compensatory, punitive, liquidated and nominal. Liquidated damages are commonly covered in the contract itself, and they are based on a reasonable estimate of losses resulting from a breach.
- Partnership dissolution – The breaching partner may decide dissolving their end of the partnership is in everyone’s best interests. However, taking the dissolution route is about more than ending a partnership. If you are a corporate business, you will need to develop new partnerships and new contracts with any remaining partners.
Whatever your approach in your contract dispute, know that an experienced business law attorney can help you better understand your options. You may need to take legal action to protect the future of your business.