Bad Partnerships: How To Break Away

Bad Partnerships: How To Break Away

Unfortunately bad partnerships can become part of any business due to differences of opinions, leadership styles, etc. So what steps do you take when it’s time to break away?

Of course, calling a lawyer is always a good first step. Even if you part on friendly terms, it’s important to protect yourself legally. At Omni Law Group, we help with disputes between owners including claims for breach of contract, fraud, unfair business practices, breach of the implied covenant of good faith and fair dealing, interference with prospective economic advantage, trade libel and many other business torts.

What other words of wisdom can we offer when it comes to bad partnerships?

  1. Keep it professional. No matter what your relationship is with your partner, business needs to be business. Try to keep your personal relationship and emotions out of it.
  2. Put it in writing. The more you have written down, the easier it is for a third party to help wade through the claims of “he said, she said” and help you both move forward.
  3. Be honest, direct and assertive. Being up front will help you resolve differences and move forward more quickly as well.
  4. Don’t burn bridges. You never know when your paths will cross in the future, so try to keep the relationship as amicable as possible.

How can you prevent bad partnerships from forming in the first place?

  1. Work with a lawyer to create a detailed and written framework for your company.
  2. Get each owner’s rights and responsibilities in writing.
  3. Discuss and create a plan for dissolution when you begin your business. You want to hope for the best, but plan for the worst.
  4. Keep everything professional and above board.
  5. Keep the lines of communication open. If there’s a problem, bring it up and discuss it with your partner right away.

Do you need counsel for a bad partnership? Or for creating a new business with a partner? Contact us and we can help you out.

Photo Credit: Victor1558

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