But when the two have wildly disparate and divergent ideas and plans for their enterprise, the partnership can go south in a New York minute. Below are four of the most common business disputes that lead to big problems.

1. The partners’ visions differ dramatically

You may be content to be a big fish in a small pond here in your Las Vegas community. But your partner is chafing at the bit to expand nationwide to the East Coast. Regardless, the two of you are not on the same page at all regarding your company’s future.

2. One partner fails to carry their weight

Maybe your partnership agreement divides up the daily oversight and management tasks 50-50. Yet you still wind up doing 70% of the work. Over time, resentment continues to build until there is open conflict over the perception that your partner is shirking their responsibilities.

3. Company assets get misappropriated

If every time you see your partner they are wearing another nonpurchased item from your summer menswear collection, eventually that’s money that is not being funneled your way. Whether it’s laptops or linoleum, the company assets are not solely theirs.

4. They turn off your clientele

Your business partner might just not be a so-called “people person.” But if their role requires them to interact with customers and they fail miserably, you are never going to turn a profit if your clientele beats feet going out the door.

Resolving a business partnership fail

Ideally, your partnership agreement has a detailed exit clause that you can use to extricate yourself from a failed partnership. But sometimes, you may need some legal assistance to resolve the dispute. Seeking help sooner rather than later is generally the best course.

1. Negotiate in good faith

Never let the pursuit of a good deal steer you away from your legal obligation to negotiate in good faith. If you feel like the other side isn’t doing the same, it’s better to walk away than resort to tactics like hiding information.

2. Understand what your contracts say

When you’re doing business with a foreign company, don’t take chances with unfamiliar terms. Make sure that the other party also understands what your contract terms mean — before you sign. Unfamiliar terminology can be a trap for both sides.

3. Don’t overlook foreign laws (or those of the United States).

Bribery and business go hand-in-hand in certain places but engaging in it yourself will run you afoul of the Foreign Corrupt Practice Act. However, you also have to be aware of the laws of the other countries in which you do business. For example, in some countries, your contract could be invalid if you don’t have it translated into the other party’s language of origin.

4. Address the potential of disputes

No good contract can avoid discussing the potential for problems. If you and your foreign vendor or distributor can agree on reasonable solutions in advance of any problems, you’re much less likely to end up in court.

If a business dispute does arise, sorting through the complex issues involved in your contracts can be difficult without experienced legal advice. Find out how our office can help you understand your options.

The only problem is that business arrangements can sometimes put a strain on the best of relationships unless both parties know how to establish good personal boundaries and keep a certain emotional distance. Plus, business partners always need to plan ahead to avoid disputes. This means:

• Get a signed operating agreement. Before you invest a great deal of your time, energy and effort into a business, you need a written agreement about your role in the company.
• Address the hard questions. Your agreement needs to focus on “What happens if something goes wrong?” What happens if your partner wants out? What happens if you do? Whose decision carries the day if you and your partner are at odds?
• Plan for changes. At some point in your future, either you or your business partner will get married, get divorced, retire or die. You need to have written into your agreement how those events will be handled if you see your business surviving into the next generation.
• Know your values. A values agreement helps you both understand your ethical commitments and how you envision the company culture — and it can prevent big personality conflicts over management styles.

Finally, both you and your partner should have your own attorney. Having someone there to advocate for you can help you avoid situations that are prone to cause conflicts — and makes it easy to know where to turn whenever you need help with a partnership dispute.

If your partnership dispute continues to drag on, it may be time to consider outside help. This is where mediation comes into play. Here are some points to consider as you move in this direction:

• The root cause of the disagreement: You may have to dig deeper than what you see on the surface to really understand what’s causing the disagreement between you and your partner. For example, if you no longer trust each other, mediation can only do so much. The next time a disagreement comes to light, your trust issues may move back to the forefront.
• What you hope to accomplish: Both you and your partner have a clear idea of what’s happening, where you stand and what you want to accomplish through mediation. Laying this out on the table during your first meeting with a mediator is essential to finding a solution.
• Be willing to negotiate and compromise: If you go into mediation with the idea that you’ll get exactly what you want, you’re likely to feel some level of disappointment. Success with mediation is all about negotiation and compromise from both sides.

You want to focus your time and energy on growing your business, not working through partnership disputes. However, if you’re unable to handle things on your own, mediation is one of the best ways to resolve your issues so you can once again turn your full attention to your company.

If you find yourself dealing with a breach of business contract dispute, such as between you and a client, there are several steps you can take to find a resolution. Here are some of the most common remedies:

• Compensatory damages: This is the most common breach of business contract remedy, with the court ordering the party that breached the contract to pay a specific amount to the other party.
• Punitive damages: This remedy is reserved for situations in which the breaching party is punished for a morally reprehensible action, such as if they sold you an unsafe product.
• Nominal damages: These are typically awarded by the court when there is a breach of contract but neither party suffered harm as a result.
• Liquidated damages: These damages are outlined in the contract, noting what the parties agree to pay in the event of a breach.

While there are times when you have no choice but to take action as the result of a breach of business contract, you don’t have to immediately go down this path. For example, you may be able to work things out with the other party by sitting down and talking about what went wrong. You can also try mediation, with a mediator helping you find a resolution.

The most important thing to remember about a breach of contract is that you have legal rights. If they’ve been compromised, don’t hesitate to take the appropriate action.

Unfortunately, partnership disputes are all too common. While disagreements are sure to happen every now and again, it’s up to you and your partner to avoid an all-out battle.

Here are four key steps to take if you’re faced with a partnership dispute:

• Stop it before it starts: If you see a dispute coming at you, do your best to put an end to it before it turns into something bigger.
• Don’t make rash decisions: For example, don’t assume that your business partner is in the wrong and that you need to dissolve the relationship. Rushing to judgment will only make things worse.
• Talk it out: Have an active listening session in which the two of you sit down to clear the air. Sometimes, this is all it takes to put the issue in the past and get back on track.
• Take a breather: You don’t have to hash out all the details in one conversation. If things get tense, take a step back and promise to revisit the issue in the near future.

If you take these steps and are unable to resolve your differences, it’s time to learn more about your legal rights. There are additional steps you can take, such as mediation, to help you work through your differences, so you can once again turn your full attention to the well-being of your company.