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Why mediate a business partnership dispute?

On Behalf of | Feb 5, 2024 | Alternative Dispute Resolution

There are several benefits to entering into a business partnership. You and your business partner can divide the workload equally as well as share financial obligations. With that being said, running any business, even as partners, can be stressful.

Disputes are bound to occur and what’s important is how they are resolved. One thing you may want to consider is mediation. Why mediate a business partnership dispute?

Opening up communication

The entire mediation process is focused on facilitating communication. This is something that you and your business partner may have been struggling with prior to seeking outside help. A mediator will make sure that all parties are heard. Often, business partners leave mediation sessions feeling relieved that they have been listened to. This can be the start of opening up lines of communication between business partners going forward.

Fortify the partnership agreement

All business relationships, including partnerships, should be founded on contracts. These set out the roles and responsibilities of each partner as well as their rights. The mediation process can help highlight where a precious partnership agreement may have fallen short, allowing partners to make adjustments. A partnership agreement can also include terms related to dispute resolution.

A peaceful exit

Not all partnership agreements can be resolved in the sense of both partners moving ahead with the business. The best thing all around may be for one partner to move on. Mediation can ease the transition so that a partner’s exit from the company can be peaceful.

Many business owners find mediation very useful in terms of settling disputes. It’s a less formal process than court and it is usually more efficient. Seeking legal guidance will provide you with more information to help you decide on your next steps.   

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