How can I break the contract with my business partner?

On Behalf of | Jun 6, 2019 | Business Formation

If you are a co-owner of a business, at some future point, you may be chomping at the bit to break your contract with your business partner. It could be due to a breach of the terms or a failed relationship between the parties. But the root cause of many a failed Cincinnati business is the inability of the business partners to mesh their differing management styles. Distinct differences in their approaches that at first did not seem to matter that much over time can erode a positive partnership and leave the parties at loggerheads. The problems can complicate situations where the partners already had friendly or familial ties together, e.g., to friends who co-own a bar or in-laws working in the same family business. Another partnership killer is when one partner has less of an actual or perceived commitment to the business than the other. This can foment resentment if one partner believes they are pouring their lifeblood into the company while watching the other partner act as a dilettante. If your business partnership is facing some of the above, or other, challenges, it might be prudent to look into legally dissolving the partnership. But severing the ties of a business partnership must be handled carefully to avoid allegations of breach of contract from the other partner(s). Ideally, the initial contract that you signed will detail the procedures to follow when one or more partners wants out of the contract. You and your business law attorney should read over the signed contract carefully before determining which course of action you should follow.