A partnership dispute can be a highly-charged and sensitive situation. Let the expert business dispute resolution lawyers at Stacks step in and help get the situation back under control from a legal standpoint.
It is not unusual that a business person will, from time to time, choose to carry on a commercial enterprise in common with someone else, with a view to joint profit sharing. While they may not have characterised their relationship in such terms, as a matter of law it may be that they are operating a partnership.
This has significant legal ramifications. For example, the relationship of partnership gives rise to fiduciary obligations to act in good faith, to provide full account of partnership assets and to avoid conflicts of interest and personal profits and benefits. Breach of a fiduciary duty may entitle the other partners to equitable remedies, including an account of any profits made.
In addition, each partner is jointly and severally liable with all other partners for all debts and contractual obligations of the partnership incurred while they are a partner.
Where a partnership exists…
Whether a partnership exists is a matter for a court to determine with reference to common law principles and the provisions of the Partnership Act in the relevant State.
Where a partnership exists it may be dissolved by notice or by court order, upon which the assets of the partnership can be realised and disposed of and remaining profits distributed to the partners. It is important that you obtain proper, objective legal advice.
The Stacks Law Firm commercial litigation and dispute resolution team is well resourced and experienced to assist you with the resolution of partnership disputes.
Need to speak to a lawyer about a partnership dispute manner? Call us today