Cadden & Fuller LLP Cadden & Fuller LLP

A Client-Focused Approach to Business and Real Estate Law

3 types of business partner disputes no owner should ignore

On Behalf of | Feb 23, 2021 | Business Transactions |

Disputes are common regardless of the relationship between parties. In business, disputes that arise between partners and shareholders can prove catastrophic for the company. Not all disagreements between shareholders are over simple and easy to resolve matters.

Some disputes require the use of a clear resolution path to prevent further complications that may strain the relationship between partners and all other entities even more. Here are three kinds of disputes that often lead to headaches and litigation between business partners.

Operational disputes

Some business conflicts center around aspects of an organization’s daily operations. Issues that tend to result in operational disputes between partners include differences in opinions, unclear role/obligations and irresponsibility in delegation, planning and strategic resources.

Monetary disagreements

Conflict is likely when one partner misappropriates or mismanages business funds and resources. Erroneous spending and poor financial oversight are detrimental to business operations and can create additional challenges that interfere with an organization’s success and longevity.

Intellectual property rights disputes

The key to a good partnership is communication. Disagreements can arise over the use of one partner’s intellectual property and the associated rights.

Regardless of the nature of the disagreement, without proper resolution, partners could find themselves dealing with additional matters that require litigation. It is not ideal to ignore or overlook disputes when they arise. Tackling potential issues head-on can prevent future disagreements.

Business contracts usually contain actions that partners and owners can take to resolve potential issues that interfere with their business. In complex business disagreements, successful resolution may require feuding partners to seek legal action in the form of litigation.