When you start a business, you can only hope that things will proceed as planned and you and your business partner can successfully cooperate with each other for years to come. Unfortunately, it’s not always that simple. As a businessperson it is very possible you may run into some serious conflicts down the road that could potentially land you in court.
You can sue your business partner and likewise, they can sue you. When people think of lawsuits they often believe it is exclusively involving a business and some outside party. While this is true in many circumstances, lawsuits can also begin within a single company and as such, it is important to always be prepared for these potential internal legal encounters.
In these particular cases, they often become complicated relatively quickly, namely because most business partners typically begin their professional endeavors together as good friends. For example, one businesswoman thought of her business partner as a ‘great friend’, enough so that she trusted this individual to obtain 50% control of her company. Unfortunately, things went south when her partner allegedly stopped sharing financial information, made several baseless accusations, and as this businesswoman phrased it, “betrayed her.”
Fortunately, she was able to overcome these obstacles, however the two had to spend a long time finalizing breaking off the partnership. There was also no exit clause in their agreement, making it that much more difficult to part ways. Despite the setback, the company was profitable again one year after the dispute.
This is just one example showing that lawsuits can come from unexpected sources, including business partners you believe to be trustworthy. If this, or a similar situation happens to you, it’s critical to know what steps to take and to acquire a good legal team to guide you through the process and help it go as smoothly and efficiently as possible.