RULES FOR HANDLING CONFLICT WITH YOUR BUSINESS PARTNER

RULES FOR HANDLING CONFLICT WITH YOUR BUSINESS PARTNER

A partnership is a formal arrangement to run and maintain a company and divide its profit between two or more parties. and benefits equally in a partnership company, while in others, partners have limited liability. The Partnership deed is a partnership arrangement between the company's partners that specifies the terms and conditions of the partnership between the partners. A partnership deed aims to have a common understanding of each partner's responsibilities, ensuring the company's activities operate smoothly. This kind of agreement is not legally required to be formed, but it helps solve issues between partners. There can be other ways how business partners take care of conflicts between them for a long-running business leading to steady or increasing profits and goodwill. Such suggestions are: 

 

  1. HAVE A PLAN READY AHEAD- Planning accordingly will help to settle disputes and, while they are not in agreement, provide a conflict settlement protocol to implement. Each partner's positions and responsibilities; the money handling process; and a simple guideline to be followed if a partner needs to dissolve the relationship can be treated respectfully and rationally without a long needless dispute over the same.

 

  1. LISTEN AND DON’T RUSH TO CONCLUSIONS- Any decision may seem huge, and also intensely personal, for the owners and operators of a small company. It can be very quick to shut down and switch into combat mode when a partner disagrees with the other on a significant topic. But having the ability to pause, take a breath, and consider the position of your partner would be a major factor in whether or not the conflict is settled easily and painlessly. The primary reason for forming the collaboration was that both partners had a company mission and both brought talents to the table.

 

  1. LOOK FOR EVIDENCE THAT SHOWS PRIOR AGREEMENTS- When you have a partnership arrangement, if a disagreement occurs, study it carefully. In specific, review all protocols and conditions or clauses for dispute settlement that deals with the problem at hand. It can help to achieve a settlement by relying on the agreement and the original intentions on a matter. There could be some proof of the tacit arrangement between your relationship when it started if you do not have a formal written agreement. Such proof can include messages; notes; or some other form of correspondence. To find some evidence on how you all intended to resolve any conflicts, look at these correspondences.

 

  1. LOOK FOR POSSIBLE OUTCOMES- Think of what you get out of the dispute and equate it with what would be a reasonable result. Also, consider your expectations and goals for the organisation. You are unable to settle the conflict if your mate has distinct interests and aspirations in an environment that you are fighting about. Before trying to address this specific thing, have a chat to check if you're on the same page about the bigger picture for the company.

 

  1. DON’T LET THE DISAGREEMENT AFFECT THE COMPANY OPERATIONS- It should not concern just the two of you to have a controversy with your business partner. If not properly treated, a conflict will jeopardise client relationships, employee productivity and business performance. Try hiring a mediator or arbitrator, if necessary, to help settle the matter. Mediators and arbitrators are qualified to work with all types of conflicts and having one will lead to more fruitful negotiations, a quicker settlement, and a conclusion that is more favourable to both sides and the organisation.

 

  1. GET A MEDIATOR IN CASE OF SERIOUS DISAGREEMENTS- In a non-confrontational manner, a mediator may assist both parties to present their views or positions. A somewhat better, and more positive, the outcome would undoubtedly result from this trade. A mediator may make sure the feelings of the couples are kept out of the conversation. Emotions are also a significant reason that a debate does not proceed or a settlement cannot be found while there is a disagreement. Eliminating or tempering one's feelings may assist both sides to reflect on the practical conflicts between them. This attention would allow an equal platform for both sides to present their viewpoints and potential proposals. Typically, a mediator may have familiarity in those forms of conflicts. Disputes involving collaborations are popular. A skilled mediator may be able to rely on previous conflicts that he or she has worked with and/or managed to settle and recommend tactics or remedies that are beneficial and successful. Conversely, a mediator can also consider that a conflict cannot be settled and that an amicable split is best off for the parties.

TO KNOW MORE ABOUT IMPORTANCE OF PARTNEMRSHIP AGREEMENT, CLICK HERE -   

Other solutions that one can opt for are: 

  1. Determine the problems in the conflict 
  2. Consider Splitting Up 
  3. Go to the court as the final resort
  4. Allow it time to settle the controversy
  5. Retain an attorney for commercial law to prepare relationship papers
  6. Don't take it all too personal,
  7. Predefine each partner's positions and responsibilities to discourage fights from happening.
  8. Have a session for Active Listening

DO YOU KNOW WHY BUSINESS PARTNERSHIP FAIL IN INDIA? SOLVE PARTNERSHIP PROBLEM, WATCH THIS VIDEO- 

Any agreement runs smoothly when there is respect, mutual consideration and consent between the sides and being on the same page. Any form of disagreement can come down to a solution or two, but if no solutions are suitable, then it is best to separate ways without bringing down the goodwill by legal conflicts. 

CHOOSE THE RIGHT FORM OF PARTNERSHIP FOR YOUR BUSINESS. WATCH THIS - 

BY - ADITI GOEL