There are times when a business partnership can be compared to marriage because partners have the same fiduciary duties toward each other just like you and your spouse have.
In your business partnership, issues involving trust, finances, and control may arise. At the Greenville law firm of Bannister, Wyatt & Stalvey, LLC, our business lawyers understand the dynamics that can become involved in conflicts within a business partnership.
What is Business Partnership?
In legal terms, a business partnership is an agreement or arrangement when two or more entities join to conduct a business activity. Your partnership can be formed at the time your new South Carolina business begins and could be run by just a few partners, or between two existing separate businesses that want to accomplish a goal.
Other reasons why two companies may consider a business partnership include:
- Creating and/or marketing a product
- Expand your client and/or customer base
- Conduct market trend research
- Expand profit margins.
In general, a business partnership may terminate once the specific goal of the partnership was met, or one partner isn’t able to continue with the business activities, becomes incapacitated or dies.
What Are Some of the Disputes That May Arise in a Business Partnership?
The most common dispute in a business partnership normally involves a breach of business contract. A business contract specifically spells out how the partnership is going to operate, the short-term joint business ventures, and the long-term agreements.
A business contract is breached when you or the other party fails to perform their duties as laid out in the agreement or doesn’t hold up their end of the deal.
Other common forms of breach of contracts involving a South Carolina business partnership may include:
- Violation of non-compete clause or other contract terms
- Unauthorized disclosure of confidential information
- Breach of the business partnership agreement
- Violations having to do with insider trading
Other legal issues could arise within a partnership dispute, but the most important thing is that you could avoid a partnership dispute if you have a detailed and strong agreement.
How Can Business Partnership Disputes Be Resolved?
If you and the other party can’t resolve the issue, very often this could lead to a lawsuit. A lawsuit could be necessary to determine which of you is at fault in this particular dispute.
If your dispute involves complex legal issues such as a liability claim, it’s likely a lawsuit will need to be filed to settle the issue. Should you or the other party file a lawsuit, the court will, in most cases, need to examine your partnership agreement to figure out the responsibilities and rights of each of you.
Some South Carolina business partnership agreements contain a clause that lays out specifically what should be done in the event a legal dispute arises. In the alternative, your business agreement may state that you and your business partner agree to participate in an alternate dispute resolution method such as mediation.
If you are successful in proving that your business partner breached the terms of your agreement, monetary damages may be available to you. These monetary awards normally are determined by the judge or a jury.
Should I Use A Lawyer for My South Carolina Business Partnership Dispute?
If you need help in forming a South Carolina business partnership, or a business partnership agreement, it is in your best interest to contact a skilled and knowledgeable business attorney.
If you are in a business partnership dispute, you should contact a South Carolina business attorney.
A South Carolina business partnership dispute could involve complex legal issues. The experienced business attorneys at the Greenville law firm of Bannister, Wyatt & Stalvey, LLC can advise you of your next steps and represent you to help solve the business partnership dispute, even if it goes to trial.