Why early intervention is crucial
It’s not easy to start up a business. Plenty of blood, sweat, and tears go into establishing a partnership and ensuring the company is profitable in its industry. With the tunnel vision necessary to get things up and running, you can miss important details, such as having a partnership or shareholders’ agreement drafted. This document is pure gold should a business dispute occur down the track, as it outlines how the business owners should proceed. It saves time, money, frustration, and stress by setting out how to resolve business disputes promptly so you can avoid deadlocks, costly litigation, and court appearances. It’s always better to aim to prevent conflicts with appropriate planning, and if a dispute occurs, address it swiftly before it escalates.
Get a partnership agreement
Your business lawyers in Melbourne can formulate a partnership or shareholders’ agreement, and this document sets out how to proceed in cases of a dispute between partners or shareholders. It also outlines the management structure, job titles and responsibilities, working hours, business partner salaries, buy and sell agreements, financing expected, succession details, and deadlock provisions when you cannot reach an agreement on a given issue. Working with business lawyers in Melbourne early on saves you money and stress. It may seem expensive to hire lawyers to draft a partnership agreement. Still, it’s your insurance policy against further expenses down the track due to fees from business dispute lawyers and litigation, which can be considerable. If you never established a partnership agreement early on in your business history, you will be at a disadvantage, as there will be no ground rules for how to proceed in the case of a dispute. You will need to consult with business lawyers in Melbourne to help resolve the issue.
Disconnect from the emotion
Often when business disputes occur, they can be pretty emotion-driven. A disagreement can feel personal when you’ve worked hard to pour all your energy into a business. But taking a step back and discussing the issue with business dispute lawyers can help you gain a new perspective. They will see the matter in black and white legal terms and can help you take a more objective view. They may also suggest that you look for items in writing from your business partner that outline terms for working together and procedures you have agreed upon. Even communication such as emails or text messages may contain important information that will help in negotiations or court. A good way of disconnecting from emotion is to get a mediator involved in the dispute. This neutral third party can help you navigate disagreements more efficiently, avoiding the need for court appearances or litigation, which will help you save money and protect the business’s reputation. Early intervention is crucial because the longer a dispute goes on, the more resentment builds up between the parties involved. It’s best to nip things in the bud early on and prevent damage to partnerships and businesses.
The last resort
Going to court and the process of litigation really should be the absolute last resort when you are experiencing a business dispute. This is because it’s expensive, stressful, can tarnish the name of your business, and it still might not eventuate in the result that you want. Our business dispute lawyers are highly experienced in all facets of litigation, court appearances, and mediation. They can certainly provide the best legal advice possible should you need to go to court. Still, it is never recommended as the first port of call. Make sure you at least try mediation with your business partner. You could be surprised at the progress you can make in resolving your dispute just with the help of a professional mediator. Some people go to court with the motivation of revenge, but this is rarely helpful in the long-term and does not guarantee the issue will be resolved in your favour. The court will go on a fact-finding mission to understand the truth of the matter. A hostile demeanour will only work against you, as your business lawyers in Melbourne may warn you. In the end, it is better to resolve issues before they become so heated through simple talks with your business partner or the help of a mediator.
Quickly resolve your business dispute with P&B Law
If you’re involved in a business dispute, you must get on top of the issue swiftly before it worsens. At P&B Law, we have experienced business dispute lawyers who can help you disconnect from the emotion around a problem and explore your options for resolving it through mediation or other legal means.
Contact us today to understand your rights and obligations in a business dispute.