Can You Force Someone Out of a Business Partnership?

Business partnerships are contractual relationships, which means ending one is not as simple as just saying it’s over. In the majority of situations, one partner cannot force the other person out. 

While it’s best to end the business relationship on good terms, at a minimum, the dissolution must comply with what has been stipulated in the partnership agreement and comply with state and federal laws.

Dissolving Business Partnerships

Contentious disputes may lead one business partner to consider taking drastic action, such as forcing the other partner out, but legally this cannot happen without following certain rules.

First, you must look at what is in your partnership agreement in terms of dissolving your business. Ideally, you will have a written agreement detailing what steps need to be taken to attempt to resolve disputes between partners as well as any provisions there may be for a partnership buy-out.

If you don’t have a partnership or shareholder’s agreement, then state and federal laws will provide direction. Generally, as long as there wasn’t any fraudulent activity or violation of the partnership agreement, a partner can’t be forced out without having the right to their share of profits.

When business disputes can’t be resolved internally or via mediation, tensions can escalate even further. Our commercial law attorneys at Silverberg|Brito, PLLC can advise you on what steps to take for your given situation to ensure that your rights are protected and business interests are upheld during a dispute with your business partner. 

Contact us to schedule a free consultation. 

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