It often makes good sense for two or more people or companies who are joining together in business activities to form a partnership.
As this blog has mentioned earlier, a partnership can be formed when two people simply agree, even informally, to pool their resources together in to a business and then to split up the profits they make. While business is smooth and partners are getting along, this arrangement usually works great.
However, during difficult circumstances or in disagreements, partners can find themselves in the midst of business litigation.
A number of laws and legal principles are in play with respect to partnerships. For instance, partners have what are called fiduciary duties to one another. Basically, these duties require partners always to act in the best interest of the business, and the other partners, when it comes to handling business income and property.
A partner cannot, for example, self-deal or use partnership resources for personal gain. He or she may also not compete with the partnership via a side business or some other investment opportunity.
Although it is not strictly required, many partnerships will have some sort of partnership agreement in place. These agreements are valuable in the sense that they can lay down ground rules that all partners must observe and can even explain how business partners will resolve any disputes that come up. However, they can also lead to litigation if one partner accuses another partner of violating the agreement.
Partnership disputes in Coral Springs, Florida, can quickly turn in to costly and stressful legal matters. Should this happen, getting the help of an experienced business attorney is important.