When starting a company, it’s important for co-owners to set up a partnership agreement. This can establish things like what roles they’ll take on, how much of the company they own, what to do if they have a dispute, how much authority they have, how long the partnership will last and much more. It’s a way of setting up a legal relationship so that you both know exactly where you stand — and it goes far beyond a handshake and an agreement to work together.
But what if your partner begins breaking the agreement? What if they refuse to follow it?
For instance, maybe your agreement clearly states that you have to make all large financial decisions together, but then you found out that they’ve been spending money without asking you. Perhaps the agreement says that you need to meet with each other to hire any new employees, but they just brought on someone new without even telling you, much less involving you.
Ideally, your partnership agreement will also talk about dispute resolution. It may also mention what to do to break off the partnership entirely. It can guide you even when things get difficult. You may have specifically put in a list of steps to take if anyone violated what they agreed to when the company launched.
Regardless, this can be a very tough time for you professionally. Dealing with this type of breach of contract by someone you trusted is not easy. Make sure you take the time to look into all of your legal options with an experienced attorney.