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Can a business partner simply walk away?

On Behalf of | Sep 17, 2021 | Business Law Litigation

When two or more people go into business together, there is an assumption they will share the responsibility of operating the business. Partners typically share the financial obligations of business ownership, as well as the profits. There is often a strong dependency between business partners, and when one decides to walk away, it can be devastating in multiple ways. The remaining partner may then want to know whether he or she has any right to pursue legal action against the other.

The possibility of a lawsuit

There are times when it may be possible and appropriate to pursue legal action against a Florida business partner over the issue of abandonment. The terms of the partnership agreement and other factors will determine if this is possible, but a partner may follow this course if the following apply to his or her situation:

  • The act of abandonment is a violation of the terms of the partnership agreement.
  • The partner acted in a way that harmed the best interests of the business.

Business partners may have legitimate reasons to leave the company, but breach of any fiduciary duty owed could result in a lawsuit. The remaining partner could have grounds to sue for financial losses and other types of damages.

A strong agreement is key

The foundation for making any type of business partnership work is a carefully crafted partnership agreement. This contract should outline terms regarding the expectations and responsibilities of each partner. A strong agreement may reduce the chance of issues such as abandonment and other types of disputes.

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