The Sloan Law Firm PLLC

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A Forward-Thinking Firm

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How should you handle business partner disputes?

by | Dec 16, 2021 | Employment Litigation

For a while, you and your business partners got along well. Recently, you encountered choppy waters and want to find a way back to shore. How do you navigate disagreements between business partners?

Chron offers tips that may help you and your partners find relief. Learn how to put your business and partnership back on track.

Management agreement

When you first started your company, did you create a management agreement? If so, the document may mention how to handle partnership disputes. Look over your agreement for such language or something similar. For instance, perhaps you all agreed to let a mediator handle the matter. Perhaps a specific partner has the final say in company conflicts.


Sit with your partners to understand what everyone wants. That way, you have the information you need to negotiate and compromise. For this to work, everyone must practice openness and complete honesty. With negotiating your way out of a dispute, remember that no one gets everything they want. You must ask yourself and your partners if they feel comfortable with that. Otherwise, compromising may not work.

Legal action

If you do not have a management agreement, and if you cannot negotiate your way out of conflict, you or your partners may feel that legal action represents the only way out. Either you or one of your partners may bring a civil suit to take control from another partner or force a buyout.

As in life, conflict becomes part of operating a business. Rather than wait for the inevitable to happen, have a plan for responding to it with grace.