Partnerships do not always work out as hoped, even when mutually agreeable terms were established from the beginning. People change and so do business conditions, and that can cause formerly reliable, predictable partners to act in unexpected, undesirable, and contractually unjustified ways.
When a business partner does breach the agreement that governs the relationship, however, there are always effective ways to respond. While it will normally be best to avoid such problems in the first place, informed, strategic action can help minimize the damage that will be done.
When a person who was once seen as trustworthy breaches a partnership agreement, personal feelings can easily make things even more difficult. For this reason and plenty of others, getting in touch with a Breach of Contract Lawyer as soon as possible will almost always be advisable.
That simple step will make potentially costly mistakes less likely and also make it easier to start exploring the available options. There are millions of businesses nationwide that are incorporated as partnerships, and this means that all the possible problems have been experienced many times over.
Even partnerships that once functioned very well can break down for any of a wide range reasons. When a partner does overstep established bounds or fail to live up to clearly defined responsibilities, it will often be because of long-simmering tensions or other issues.
That can make it difficult to maintain the composure and perspective required to respond as effectively as possible. Having legal counsel to rely on often proves invaluable at such times.
Being appropriately prepared and composed will always make for a good start when a partner’s behavior appears wanting. There are four increasingly significant and momentous steps that can be taken next:
Communicate.
A surprising number of partnership-related problems can be traced back to a lack of communication. A rebellious-seeming partner might have believed that expectations had been relaxed to the point that sticking strictly to the language of an agreement was no longer important. Making sure that the problematic person is aware of how the breach has been perceived should always be the first step. That will sometimes produce relief in and of itself, and do it without endangering the partnership.
Identify contractual remedies and relevant terms.
A properly crafted partnership agreement should specify remedies for particular types of breaches. Most such documents will also define time frames for breaches to be corrected. Laying out the legally enshrined implications of a partner’s breach will often open the way to productive negotiations. Even when a relatively casual, informal request for a cure does not produce progress, getting into the contractual details will often help.
Sue for enforcement.
Should a partner prove completely resistant to reason and negotiation, it could well be time to sue. In many cases, it will be best to first ask the court to simply enforce the terms of the contract. That will normally prove to be the least disruptive option, even if the partnership eventually ends up being dissolved.
Sue for damages.
It can also make sense to have a lawyer prepare and file a lawsuit that specifically asks for compensation for damages incurred by a partner’s breach. This will particularly often be the case when the partner’s contractually unsound behaviors have already caused harm to the business in question.
Not every partnership can survive a member’s breach of the governing agreement. In most cases, being sure to retain the services of a lawyer and trying to stay calm and thoughtful, though, will help keep the damage done to a minimum.
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