How Are Business Partnership Disputes Resolved?

Business partnership disputes that cannot be settled between the two parties themselves often lead to a lawsuit. A lawsuit may be necessary in order to determine which party is at fault in the dispute. This is especially true in cases involving more complex legal issues, such as liability claims.

Should the dispute be brought before a court in a lawsuit, the court will most likely examine the business partnership agreement in order to determine the rights and responsibilities of each partner involved.

The business partnership agreement may contain a clause that specifies what should be done about any legal disputes that may arise. For example, the agreement may state that partnership disputes must be solved with a lawsuit. Learn More about business partnership and owner disputes.

Alternatively, the agreement may state that the parties must seek alternative dispute resolution methods before pursuing a lawsuit, such as mediation. It is important to have a clear understanding of the agreement, and adhere to it, in order to avoid any unnecessary lawsuits.

If successful in proving that the other business breached the terms of the partnership contract, monetary damages awards are available to the non-breaching party. These awards are typically determined by a judge, but may also be determined by a jury.

The purpose of the damage award is to help cover the losses resulting from the breaching party’s actions. In some cases, an expert witness may be required to help determine liability, prove up damages, or help resolve other legal issues.