Establishing a business with a partner is often an effort to combine skills, efforts and resources. Business partners can help finance a new operation, build a client base and join forces in implementing a new business. However, issues may arise that causes partnership disputes in Newport Beach California. Some of the most common reasons for partnership disputes in Newport Beach California are:

No or Inadequate Partnership Agreement

Two friends or relatives may quickly jump into a new business without formalizing their agreement in writing or by quickly entering into an agreement without much consideration for it. Partners may have fundamentally different ideas about their role in the company. A business lawyer can help draft a partnership agreement that clearly defines the partners’ roles, as well as ways to resolve conflicts or leave the business.

Different Ideas on Direction

Partners may disagree about how a company should be run or what its future goals will be. Partners may not agree on expanding, offering new products or services or extended operations into a new industry. When they are not able to reach a resolution, they may need intervention or may decide to split up the business.

Partner Wants to Leave

Another common issue may arise when a business partner no longer has his or her heart in the business. A business partner may wish to leave, but the partners may not agree on how to buyout the partner’s share. They may disagree on retirement amounts or other forms of compensating the partner after he or she is no longer part of the company.