3 Common Reasons for Business Partner Disputes

lawyer and client

At some point, it is almost inevitable for business partners to find themselves in a dispute. Relationships between business partners – whether they are close colleagues or distant shareholders – can be complex and have many moving parts susceptible to disagreements. If not managed properly, these disputes could lead to severe consequences.

Our business attorneys at Miles Hansford, LLC are here to explain some common types of disputes that we can help you to resolve.

1: Financial Disparities

The effects of financial disparities can lead to business disputes in various industries. As different businesses operate on various financial levels, it is not uncommon for disagreements to arise over payments and payment plans. A financial disparity can cause one party to try and seek out more money than they are contractually obligated to receive or delay payment beyond the agreed upon due dates.

2: Management Differences

This type of dispute is likely to arise when two entities with completely different views on management come together through a professional or corporate relationship and cannot reach a mutual understanding. To avoid such setbacks, economic and managerial strategy should be discussed thoroughly prior to the collaboration and both parties should come to an agreement on the fundamentals of an effective relationship.

3: Contract Breaches

A contract breach is a failure of one or both parties to fulfill their obligation to another party in accordance with the terms and conditions outlined in a business agreement. This can occur due to misunderstandings, failed communication, or deliberate deception. Contract breaches are serious violations and can cause significant harm to one or both parties, resulting in legal action and costly penalties. It's important for businesses to take steps to prevent these disagreements before they happen and have strategies in place that address any potential contractual obligations when they arise.

Business Dispute Resolution and Litigation at Miles Hansford, LLC

Business disputes can be complicated and difficult to resolve without legal assistance. A business attorney can play an invaluable role in providing guidance and support throughout the dispute resolution process. Work with our team at Miles Hansford, LLC to get your matters resolved and your business back on track! Call us today at (770) 574-6688 to discuss your situation.

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