Going into business with another person resembles a marriage. While your business partner does not have to be your best friend, you should be careful to partner with someone who is committed to working in tandem with you to create a successful enterprise. However, if you find yourself in the middle of a disagreement with your business partner, your options for settling the matter depend upon the legal structure of your business and your upfront planning.
Negotiation
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The hallmark of a successful business relationship is communication. Before you resort to any of the more structured ways of settling a business-partner dispute, you should make every effort to hash out the matter directly with your partner. Often, if each side is willing to compromise, a reasonable settlement can be reached through negotiation. The underlying spirit of a partnership is understanding that neither partner can have everything his own way all of the time.
Mediation
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Business mediation is an option for partners who need an independent third party to help decide a dispute. A number of private firms and nonprofit organizations such as the Better Business Bureau offer mediation services for their local business community. The mediator is typically trained in dispute-resolution techniques and can help warring partners find a middle ground. Mediators charge a fee for their services, but the cost is usually worth it if it can keep your business running smoothly.
Management Agreements
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Savvy business partners plan for disputes before they happen by implementing a management agreement at the outset of the business. A partnership agreement, an operating agreement or bylaws -- depending on how the business is set up -- can specify what should take place if the partners disagree. The management agreement can require the partners to go to mediation, or it can specify that one partner has the final say in certain matters. In the case of a dispute that can't be resolved, a management agreement can give one partner the right to buy the other partner out at a specified price. A well-crafted management agreement can stop partner disputes from getting out of hand and disrupting the business.
Court Action
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The ultimate arbiter of a business partner dispute is a judge. If you don't have a management agreement in place that can facilitate one partner buying out the other, a deadlocked disagreement between partners can end up in court. A disgruntled partner can bring a civil suit to force a buyout or to wrest control of the business from another partner. A judge can set a price for a partner's buyout or liquidate the business entirely, depending on state law and the legal structure of the business.
