Duties Business Partners Have To Each Other

Originally published by Cris Feldman.

Starting a business is incredibly exciting, but many first time business owners don’t anticipate the many responsibilities involved with running a business. When partners form a business, they must fulfill certain duties to each other. When one or more partners fail to fulfill these duties, partnership disputes arise and can jeopardize the whole business.

Partnership Duties

Partners must always put the interests of the business ahead of their own personal interests. This non-delegable duty can be broken down into several specific duties:

• Duty of Good Faith and Fair Dealing – Partners must always act honestly and fairly regarding the business. Deception or misrepresentation violates these duties, and partners can be held responsible for their actions.
• Duty of Loyalty – Partners owe a loyalty to the business. This means partners cannot engage in self-dealing and must avoid conflicts of interest. If there is a conflict of interest, the affected partners must immediately inform the other partners.
• Duty of Care – Partners will make many business decisions, some on a daily basis. When making decisions, partners are expected to act reasonably and with care.
• Duty of Full Disclosure – Every partner has a right to certain information regarding the business and the other partners. Partners must disclose to other partners information such as potential business opportunities, contracts entered into, finances, and operations.

Resolving Partnership Disputes

Partnership disputes are very delicate legal matters. If not resolved quickly and efficiently, these disputes can snowball out of control and destroy a business. The best way to preserve a business at the heart of a partnership dispute is to work with an experienced business attorney. A partnership dispute lawyer will be able to assess the situation and devise a strategy for resolution that protects the hard work partners have put into the business.

Houston Partnership Dispute Lawyers

If you are facing any type of internal conflict, don’t wait to get the help of a Houston partnership dispute lawyer. The sooner you involve an attorney, the better you can protect your business. At Feldman & Feldman, our business minded lawyers understand each dispute is unique. Not all partnership disputes are destined for the courtroom. We create unique actions plans to resolve business disputes. Contact us today to schedule an appointment with one of our Houston partnership dispute lawyers.

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Curated by Texas Bar Today. Follow us on Twitter @texasbartoday.

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