Common Partnership Disputes
Here are the most common partnership disputes and why you should seek the help of an Ellis County business attorney to help resolve these types of disputes outside of the courtroom.
Most partnerships often start with the hope to blossom in the future. Unfortunately, things may not go as planned. The partnership may break apart due to disputes, leaving some partners in substantial financial crisis due to debts and other liabilities. The disputes may also ruin the company's reputation.
Filling a lawsuit can be a way to resolve partnership disputes. However, resolving disputes through litigation can damage the reputation of the business. Therefore, it's advisable to seek the help of an Ellis County business attorney to help resolve these types of disputes outside of the courtroom.
The most common partnership disputes arise from:
Most partnership agreements contain a detailed guide on how to dissolve the partnership if things fail to work out. Besides, there are specific legal obligations for partnership dissolution. Unless the agreement demonstrates otherwise, it's unlawful for a partner to leave the partnership promptly.
- Breach of Contract
Contract breach is one of the most common causes of partnership disputes. It's essential to take partnership contracts seriously, whether written or unwritten. If one of the partners has violated the contract, other partners can make a breach of contract claim. It's essential to consider hiring the expertise of a business attorney like JD Foster in the initial stages of partnership to ensure you effectively solve the dispute in case there is a breach of contract.
- Breach of Fiduciary Duty
All partners should be willing to handle the business's financial interests over and beyond their individual interests. Failing to honor this commitment is known as a breach of fiduciary duty. The breach of fiduciary duty may also occur when a partner fails to meet a client's obligation.
Embezzlement occurs when a partner intentionally takes the assets or property belonging to the company without permission. Some of the most common forms of embezzlement include shrinkage of inventory, false expense claims, forging invoices and cash receipts, and payroll fraud schemes. Embezzlement is a serious offense punishable under law.
The conviction can result in hefty fines or a lengthy jail term sentence. If you have been accused of embezzlement, business attorneys at Foster Massengill, PLLC have the expertise to offer the legal support you need.
- Violating Trade Secrets
It's normal for partnership businesses to collaborate with other businesses to source new products or services to enhance visibility and boost revenue. However, one downside of participating in such collaboration is the possibility of exposing trade secrets. Obtaining critical information about the partnership and using it after leaving the partnership can be one of the causes of partnership disputes.
Schedule a Consultation with a Partnership Dispute Attorney Today
The Ellis County business attorneys at Foster Massengill, PLLC have experience handling different types of partnership disputes. You can count on us to offer the legal support needed between the partnership's formation and dissolution. Contact us online today or call us at (972) 878-9105 to schedule a consultation and learn more about how we can help resolve your partnership dispute.