Despite the fact that a business partnership is not necessarily a person to person relationship, rather one commercial entity partnering up with another in order to pursue and advance a mutual interest. Individuals, however, are involved therefore the partnership most certainly entails the intricacies of a relationship. Thus, like many relationships disputes are probably on the horizon. Having definite expectations made clear in an agreement from the very beginning of the partnership is the most desirable way of managing disputes.
New York Law dictates that there are obligations and fiduciary responsibilities amongst those entering a business partnership. These obligations and fiduciary responsibilities are not limited exclusively to the business but have implications on external business opportunities that may only be marginally related. Knowing what your obligations and rights with regard to your business and that of your partners under such circumstances are important.
Establishing a Partnership
Whether family, friend or stranger, having an adequate agreement in place at the onset of the partnership creation is certainly the most ideal way of steering clear of a partnership dispute. People are often uncomfortable bringing up a partnership agreement. Despite this discomfort, an agreement is a way of clearly communicating expectations amongst partners. An agreement provides a definitive understanding of how to operate when dealing with debts, assets and opportunities associated with the business. Our lawyers can guide you through the process in a way that clearly outlines your obligations and rights should a business partnership dispute surface.
Disputes within a Business Partnership
Entering a business partnership forces those involved to operate above board, increasing the expectations of responsibility amongst partners and the business itself. Disputes are often the result of the diversion of assets owned by the business; misappropriation of assets owned by the business and the misappropriation of business opportunities that belong to the business.
Having a lawyer to represent you and your interests in court to effectively communicate to the opposing side essentially relieves you of having to “step out” emotionally. Our job is to represent your case impartially with clear and effective communication. A poor business partnership has possible future ramifications. Dispute resolution is more than simple retribution, it’s just as important to recognize future businesses and potential successes.
If you find yourself unable to resolve the partnership dispute, a lawyer can assist with the dissolution of a partnership in a way that is deemed equitable to those involved. There are two types of dissolution, involuntary and voluntary. Involuntary dissolution means only one of the partners is interested in dissolution, he/she is responsible for filing suit. The courts then issue the dissolution of the business partnership, dividing up liabilities and assets. The court can designate a receiver to operate the business during the dissolution process, depending on the type of dispute. Voluntary dissolution, on the other hand, is when both partners are interested in the dissolution of the partnership. Good legal representation makes this process much easier. Shedding light on matters pertaining to how to operate extant business projects, debts and the division of any assets.
Provided you are establishing a business partnership, or going through a dispute, diligent planning can potentially protect the business from detrimental effects such as business failure or loss in profits. If despite your best efforts, a business partnership dispute is brewing and there is a threat of destruction or disruption to your business, the legal team at Robert Aronov & Associates, PC of committed lawyers are apt to provide you with appropriate guidance and advice. Our mission is to maintain the well-being of both individuals and businesses by way of aggressive litigation and powerful negotiations. Retaining the professional and experienced guidance of an attorney is key.