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Potential reasons for disputes between business partners

On Behalf of | Nov 23, 2023 | Business Law

Business partnerships can be problematic. On one hand, two partners who work together well may see their business flourish and achieve results that they couldn’t have on their own. On the other hand, business partners may find themselves engaged in disputes or disagreements that can really hold the business back.

It is important to understand why these disputes may happen so that you can consider the legal options you have if you find yourself in this position. Here are some examples.

Problems with money

First and foremost, disputes often focus around money. For example, maybe there are disagreements about the salary that each business partner should take or how the company’s earnings should be used or reinvested.

Issues with roles

Some disagreements will also focus around the roles that people have within the business. This is especially an issue when they overlap and both business partners think that they should be responsible for the same decisions, rather than deferring to the other person.

Problems with vision

Next, some disputes revolve around the vision that each person has for the company. When two people are working toward very different goals, it’s hard for them to work successfully.

Issues with work ethic

Finally, some disputes just focus around how hard people work. If one partner feels that they are putting in twice as much work but being paid the same, this can cause a lot of resentment. Ideally, two partners should put in the same amount of time at work – and relatively the same effort. 

Partnership agreements are legal documents that can sometimes be used to avoid some of these issues in advance. But those who do find themselves in partnership disputes also need to know what legal options they have.

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