How to deal with a breach of a partnership agreement
Getting a helping hand in business can make things a little easier. As such, it comes as no surprise that most people get into business partnerships. Done right, a business partnership can help you harness your potential and build a stronger and more profitable enterprise.
However, every business partnership comes with its fair share of challenges. For instance, it is not uncommon for you and your business partner to get into a disagreement from time to time. But what happens when your partner breaches the terms of the partnership agreement?
Warning signs that your partnership won’t last
Getting into a business partnership with the wrong party can work against the organization’s best interests. Here are some of the signs that your partnership could be headed for trouble due to a breach of contract:
- Your partner is not consistent
- Their goals are no longer consistent with the organization’s vision
- They’re making business decisions without consultations
- They never own up to their mistakes
What options do you have if your partnership is broken?
A breach of a partnership agreement is a big deal. If it happens, it is important that you take steps to deal with the matter in the most appropriate manner possible. Depending on the severity of the breach, you may take any of the following actions:
- Reach a settlement: If the breach is not too severe, you may consider mediation so you can settle your differences without much hassle.
- Expel the partner: if the breach is serious, you may expel the responsible from the organization and sever ties completely.
- Sue the partner: Sometimes, the breach can lead to damages to the business. In this case, you may sue the partner for the resulting damages.
People get into business partnerships to leverage their resources, expand their market base and grow their profits. However, if one party breaches the partnership agreement, it is important that you figure out how to protect your rights and interests.