Tips on Out of Court Business Partnership Dispute Resolution


    The fact that human beings are social creatures implies that they are also vulnerable to conflicts. Partnerships are almost similar to marriages. Choosing the right partner helps increase your odds for a successful relationship when everyone is a team player. In business, these kinds of relationships are advantageous because they enable you to pool resources and work together to a great effect. 

    However, not every day will be smooth sailing in such a relationship. There will be times when you will fail to agree on certain issues, which may pose a huge risk to the partners. In other cases, a wrong move by one of the partners may end up jeopardizing the whole relationship. When this happens, how you deal with these conflicts will determine the future of your partnership by far. This is why it is necessary to understand how to address the issue of out of court dispute resolution for partnerships. 

    Causes of Conflicts between Business Partners

    Understanding the causes of disputes between partners is key to successful out of court settlements. Being aware of the major causes of these conflicts can help easily avoid them. It is also an ideal way for partners to understand their mistakes when trying to resolve conflicts. These causes include:

    • Misconducts by one of the partners
    • Dispute on resource allocations
    • Misappropriation of funds by one of the partners
    • Disputes on business management
    • Disagreement on the allocation of duties and roles among partners
    • Disagreement on certain elements of the partnership agreement.

    Types of Out of Court Partner Dispute Resolution

    The one thing every business person understands is that court cases can be straining. This is in terms of costs, time and relationships that may end up being destroyed in the process. As such, there is a need for business partners to try other means of dispute resolution before turning to litigation. Some of the other dispute resolution mechanisms they can adopt include:


    This is a dispute resolution mechanism where the business partners engage the services of independent third-party to help them settle their disputes. For effective mediation, it is always advisable to use a certified dispute mediator such as a Clearwater business litigation lawyer. The advantage of such a decision is that you get the services of a trained professional who understands the different resolution methods. Such professionals have also familiarized themselves with commercial law, hence they have a clue of incentives that can help you achieve a middle ground.  


    Many people mistake mediation for negotiation. While the underlying principle is the same, a difference exists on how each of the two is conducted. In mediation, the presence of an independent third-party is required but the same is not a must for negotiation. However, this does not mean that you cannot seek the help of a third-party to facilitate the negotiation process with your partner. 


    Partnership Agreements

    One of the important documents in the formation of partnerships is a partnership agreement. This document entails the laws on how the business is to be conducted, including the relationship between partners. Therefore, when faced with conflict, the agreement may offer solutions on how to amicably resolve these disputes. 

    In conclusion, it is important for business partners to understand the need for resolving their disputes out of court. The litigation process may, in the end, bring more troubles as opposed to the solutions expected. Therefore, it should be the last resort after trying out other dispute resolution mechanisms such as mediation, partnership agreements, and negotiation.