Operating a Mississippi business with someone involves a certain level of trust and respect, but sometimes, one member of a partnership breaks the other party’s trust or does something outside of the terms of the partnership contract. When your business partner breaches your partnership contract, you may have several options available to you in terms of how to respond to the breach.
Per Chron.com, your partnership agreement does not necessarily have to be in written form to hold up in court. However, having a written partnership agreement in place may make things much easier in the event of a breach. While your partnership agreement may outline potential remedies in the event of a breach, you may decide to handle your business partner breaching a contract in one of the following ways.
By negotiating a settlement
If you do not necessarily want to end the business relationship between you and your partner permanently, you may decide to try to negotiate a settlement. If you and your business partner are able to compromise in this area, it may save you quite a bit of time and money in the long run.
By holding your partner liable
Another possible option for resolution involves filing a lawsuit against the partner who committed the breach. Whether this is a wise option might depend on several variables, including how severe the breach was and how big your business is.
By expelling him or her from the company
If your partner did something that warrants expulsion from your company and you have more than a two-person partnership, you may have to dissolve the business partnership if you wish to expel the party who committed the breach.
While these are some options you may have in the event that your partner breaches a contract, this is not an exhaustive summary of all possible remedies.