When we're talking about any type of relationship, for most, it's going to be at its best during the honeymoon period. Once that passes, realities set in. Partners who have conflicting approaches to operating their business often end up in court.
Partners who join forces often do so because they believe that they can make more effective decisions together as opposed to apart. When one of the parties starts to doubt that the other is carrying their weight or they're unable to compromise, then an operational dispute may arise.
While talking through problems is ideal, it's not always possible. When it isn't, it may be helpful for each partner to get their own attorney to help them either negotiate a settlement or the dissolution of the partnership. If the former is the preferred option, then this can take on many forms.
A settlement may involve an attorney helping to mediate an agreement between the partners whereby one buys out the other's ownership rights to the company. It may also involve them soliciting a third-party investor to join the partnership to help breathe fresh air into its decision-making.
If both parties agree, then one of them may retain a managing role, and the other may simply become a shareholder. Both may even ask a judge to have an interim director appointed to preside over the partnership. If they agree to this, that person will make decisions until the partners can decide how to run it or whether to dissolve it.
Partners who are seeking to avoid conflict should do their own due diligence to properly vet one another before they join forces. This means that they should make sure to check each other's background -- including whether there are any pending lawsuits that may create problems for the pair on down the road. Partners should also discuss how they're going to share their responsibilities and be compensated for their work.
Many business partners are family, friends or former co-workers. However, running a business is hard and can cause the strongest of relationships to break down. When your partner isn't living up to your agreement, then having a Melbourne breach of contract attorney, who is familiar with handling a wide range of ownership disputes, can help ensure that your rights are protected.