The nature of a partnership may, to some extent, be conducive to dispute. After all, each member is an individual, and as much as the parties may come together in agreement initially on business philosophy and purpose, somewhere along the line differences will occur. A Boston business formation lawyer can assist in preventing a dispute from causing harm to the business.
When a Partnership Agreement Does Not Exist
Many partnership disputes either arise or cannot be resolved easily because a partnership agreement was never developed. Unfortunately, it is common that often friends or colleagues who develop a business together enter the endeavor thinking that a written agreement is superfluous, only to find out later that this was a serious miscalculation.
There is no federal legislation on partnerships that provides a method of dealing with disputes. Often, the first attempt at resolution will be mediation. In mediation, both sides make their arguments to an impartial mediator; however, any suggestions made are not binding.
When mediation fails, litigation is sometimes the only means of resolution. To ensure the successful outcome of a dispute that turns into a lawsuit, an experienced Boston business formation lawyer is key. Often, the mere existence of a lawsuit will estrange both parties to the extent that the partnership must be dissolved.
If you are in a partnership, or are planning to establish one, it is essential that you work with a Boston business formation lawyer to form a written agreement that will help alleviate any disputes in the future. Call Ionson Law to set up an appointment for a free consultation at (781) 674-2562.