Getting into a business partnership with a like-minded person can be exciting and rewarding. After all, there is strength in unity. However, business partnerships also come with their challenges.
There are instances when a partner’s actions might result in disagreements. But can you take your business partner to court? The simple answer is yes, you sometimes can. Here are three instances when you might be eligible to do so:
1. If they abandon the partnership
If a partner abandons the business, it could seriously affect your ability to operate. You may be able to take action against them if it is in specific breach of the partnership terms or if their actions resulted in a gain for them and damage to the business.
2. If they breach fiduciary duty
Business owners have a fiduciary duty toward each other and the business they share. If your partner willfully acts in a manner that jeopardizes the partnership, then you may be able to hold them to account.
3. If they misappropriate the business’ intellectual property
From customer databases to special recipes, most business partnerships have intellectual property that they need to protect. These set the business apart and make it competitive. If your partner misappropriates your business’ intellectual property, leading to losses, then you may be able to sue them.
Like in romantic relationships, it is not uncommon for a business partnership to have its ups and downs. If partnership differences are costing you or your business then you need to explore your legal options. Find out how you can protect your rights and interests while suing a business partner.