Issues Arise When A Contract Dispute Ends A Partnership
On behalf of The Law Office of Lynnette Ariathurai, A Professional Corporation posted in Contract Disputes on Friday, December 14, 2012.
The end of a business partnership mirrors the end of a marriage in a number of ways. Both unions began in the spirit of cooperation and the desire to build a lasting bond. Both were uplifted by hope of future successes. When a California business partnership dissolves due to a contract dispute, the effects can feel similar to a broken marriage, and can include sadness, feelings of remorse and an inability to see past one's current emotional state.
Business partners who are faced with such a split should keep in mind that the choices made at the onset of the divide can have lasting ramifications, both positive and negative. The first thing to address is the financial state of the business. Keeping things afloat and profitable requires adequate finding to cover expenses during the timeframe immediately following the division, when one's attention can easily become diverted elsewhere. Be sure to know where your enterprise stands financially, and continue to closely monitor cash flow until things stabilize.
Another solid business tip is to move beyond your comfort zone. It is easy to allow oneself to become stagnant in the way that business is conducted, but a fresh outlook can often make a huge difference in a company's bottom line. A change in the existing partnership arrangement could be viewed as an opportunity to shake things up a bit, and try new approaches.
Although the prospect of losing a business partner following a contract dispute or other issue of contention is distressing, it is imperative to remember that change is truly the only constant, both in business and in life in general. By embracing the change as an opportunity to move forward in a new direction, a lost partnership could bring a new level of success. It is also an opportunity to examine the reasons behind the split and to work with a California legal professional to address those issues in future contracts and agreements.
Source: Forbes.com, "Founder Divorce: Nine Lessons From When My Business Partner Jumped Ship," J.J. Colao, Dec. 5, 2012