I take the stress out of dealing with commercial law issues so business owners can focus on growing their businesses.

What if your partner breaches your agreement?

On Behalf of | Jul 26, 2022 | Contract Disputes

Taking on a partner at the start of a business or helping grow your operations seems like a smart option. In most cases, business partnerships work for a while, but what happens when they don’t?

Any time you form a partnership with someone, you should have a contract in place. This outlines everyone’s responsibilities, expectations and the steps to take if someone doesn’t live up to their end of the contract.

If a breach of contract occurs with your partner, you may wonder what options you have to resolve it. Is litigation the only viable solution?

Reach a settlement

Do you want to continue the partnership even though a breach has occurred? Do you want some type of restitution for the breach? You can negotiate a settlement that works for you both in this case. With this type of compromise, you don’t have to end your business partnership, but you can still receive compensation for the breach.

Sue, your partner

If your company has experienced losses due to the breach, then suing your partner may be the only way to recoup your losses. It’s a good idea to learn what legal recourse you have in this situation to ensure you can get the true value of the losses their breach caused.

Expel the partner

This option is only available if it is outlined in the initial partnership contract. Usually, this option is only reserved for especially egregious breaches.

Understanding your legal options

If you have a partner who has breached the contract you signed, you have legal options to recover damages. Understanding what these are will help you determine the right steps to take to protect yourself and your business.