Starting a business is exciting, and when you go into this, you have only the best outlook for the future. You may even take on a partner to help reduce your workload and complement your skills and abilities.
While partnerships can be successful, there are situations when things may not work out how you planned. If your partner is negligent and their negligence results in losses for you or the business, you may wonder what options you have to recover these losses.
The business partnership agreement
You should have a business contract or agreement when entering a business partnership. The partnership agreement is a document that is created to protect all parties. It should contain specific rules and guidelines that everyone must abide by and outline everyone’s roles and responsibilities. If your partner acted (or failed to act) in a way that violated the standards of care they should have followed or didn’t conform to reasonable expectations, you may have the basis for a negligence claim.
Part of your partnership agreement is how to handle disputes. It should include what options you agree to, such as mediation or litigation (for example). It is best to turn to the agreement to see your options.
If your partner’s negligence led to losses, it is important to prove what happened. If you have the agreement, this should be simple. However, there are situations when negligence may occur outside of the agreement. When this happens, proving losses can be more challenging but not impossible. You can still litigate the situation to ensure you recover the losses incurred because of your partner’s negligence.
Knowing your legal rights and options in these situations is essential. The information will help you achieve the best possible outcome for your situation.