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If a business partnership dispute gets to the point where the partner simply cannot come to an agreement between themselves - one of the partners has seriously betrayed the other's trust or acted against the partnership's interests - it may be that the best and only option is to end the partnership entirely.
However, the process of ending a partnership because of a business partnership dispute is nowhere near as easy as many people think. Everything is not simply split in half for each partner. The outcome and legal situation is highly dependent on several factors. For example, if one or more partners want to leave the business whilst the others remain, you will need to consider whether or not there is a written partnership agreement is in place, and if so what are the terms - the alternative being that the business relationship is governed by the Partnership Act.
Unfortunately, there is a high correlation between any business partnership dispute and the failure of the business. This is because it is hard to smoothly run a business when there is dispute in the partners, or if the partners are not exactly seeing eye-to-eye, and may even refuse to work together in any capacity, until the issue has been resolved.
Many complications can arise in these sort of disputes. One partner may want to end the relationship and even the business itself, whilst another may want to continue to keep the business open. Third parties may be brought into the equation to try and come to a solution through either mediation or arbitration. If a solution can't be found, the next step is usually trying to reach a resolution through the courts.
Sometimes litigation is the only option if all other avenues have been exhausted. However, if there is a business partnership dispute in which one or both of the partners thinks that the end of the partnership is inevitable then it may prove impossible to rescue the relationship.
Dissolution of the partnership may lead to the sale or closure of the business; make sure that this is done legally and correctly, and try not to be in a hurry to sell, as it's likely that you won't get the best deal possible.
If you and your partner are currently having a business partnership dispute and need legal advice, it is absolutely essential that you receive the best and specialist legal advice available so that you can analyse all of the options available. If your partnership looks like it is going to end, along with the business, be sure to take the appropriate steps and get legal advice as early as possible.
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