A business partnership can be very useful. You and your partner can share the financial responsibilities, the liabilities, the recruitment process and other burdens associated with running your company. That being said, a business partnership can become burdensome if the parties involved are not on the same page.
If you believe your business partner has abandoned your company, what are your legal options?
Was the contract breached?
A partnership agreement is a legally binding document. Whether or not your partner has breached the contract will depend on the specific terms of the contract. For instance, if the contract states that a notice period must be given before either party terminates the partnership, your partner could be in breach if they left without honoring that obligation.
Is your intellectual property at risk?
Another factor that may come into play in abandonment claims is intellectual property. Your intellectual property, such as your trade secrets, copyrights, domains and patents are likely pivotal to the success of your brand. Your business partner cannot simply take these assets and use them to form their own company. This would likely be classed as a breach of fiduciary duty and it may also be a contractual breach if your partner has signed non-disclosure agreements.
If someone wants to move on, it is probably not beneficial to force them to stay. That being said, all parties, including business partners, must adhere to their side of legal agreements and honor their fiduciary duties. If you are in this situation, we can help. Contact us, and schedule a consultation.