When two or more people come together to form a partnership, there is always the potential for disagreement. Sometimes these disputes can be resolved without litigation but other times they end up in court. If you’re involved in a partnership dispute, it is important to understand how you can resolve it in a way that is fair to all parties involved.
This is a process where an impartial third party helps to facilitate communication between the parties in order to reach a resolution. Mediation can be helpful in disputes where there is some disagreement on the facts of the case, or when emotions are running high and it is difficult for the parties to communicate directly with each other.
One partner buys out the other
If one partner wants to end the partnership and the other does not, the partner who wants to leave may be able to buy out the other partner’s share of the business. This can be a good solution if both parties are willing to negotiate in good faith and there is enough money available to fairly compensate the partner who is leaving.
Dissolve the partnership
If mediation or a buy-out is not possible, the only other option is to dissolve the partnership. This means that the business will be shut down and all of its assets will get distributed among the partners. This is usually a last resort as it can be costly and time-consuming.
If the parties are unable to reach a resolution through mediation or a buy-out, litigation may be necessary. This is a process where the case gets heard by a judge or jury and a decision is made based on the evidence presented. Litigation can be expensive and time-consuming, but it may be the only option if the parties cannot agree on a resolution.
No matter what method you choose to resolve your partnership dispute, it is important to keep the interests of all parties involved in mind. You should also understand the specifics of your situation before making any decisions.