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Resolving disputes in a partnership

On Behalf of | Jan 29, 2021 | Business Disputes |

Business owners in Texas who are experiencing difficulties with a partner may believe that taking the other party to court is their only option. However, lawsuits dealing with business litigation can not only prove expensive, but they also take away precious time more profitably spent operating the business. Understanding the other options you have to resolve a business dispute may help you avoid litigation.

Negotiation

In many cases, business partners can resolve a disagreement between themselves without resorting to outside involvement. Successful business owners are usually already well versed in negotiation, which is a necessary skill when dealing with business disputes. If the parties involved in the dispute can reach an agreement on their own, it saves both time and money.

Mediation

Business mediation allows both parties to sit down with an unbiased third party who serves as a mediator between them. Most mediators are professionally trained in resolving conflicts and arriving at amicable agreements. If both parties have agreed to the process in advance, the mediator’s decision can be binding. While mediators do charge for their services, the fees are usually considerably smaller than those incurred by taking a case before a judge or jury.

Management Agreements

The most successful business people plan for problems before they have to face them. Having legally binding management agreements in place when you form a company can greatly reduce the likelihood that a business dispute will lead to eventual litigation. Signed contracts that are legally enforceable often allow business owners to be proactive when dealing with potential disputes. You may wish to have these drawn up by a business attorney.

No matter which method you choose for settling your internal dispute, business owners usually benefit from working with an attorney. A lawyer who is familiar with business litigation can review contracts, provide relevant advice and proceed to court if necessary.