Proving that a business partner didn’t uphold their responsibilities outlined in a partnership agreement can be challenging. In some cases, even the most comprehensive agreement isn’t enough to stop an issue from occurring. While some small partnership disputes might not lead to legal action, more serious breaches may require litigation before a suitable resolution can be reached.
Anyone who’s in this position should ensure they have adequate proof that their business partner breached the agreement at issue, in addition to proof of the damages that were caused by the breach. These cases can potentially require litigation, so it’s best to have everything in order before any accusations are relayed to a business partner.
Gathering documentation
The first step in proving a breach by a business partner is to gather all relevant documentation. This includes emails, contracts, financial statements and any written communications between partners. These documents should show without a doubt that the partner didn’t uphold their contractual obligations. Some of these documents that will be needed will vary. For example, if a partner is misappropriating funds, financial records are necessary.
Witness testimony
Witness testimony can also play a significant role in proving a breach. This could include statements from employees, customers or other third parties who have witnessed the actions in question. The witnesses must be credible and they must provide completely accurate statements. There must not be any tampering with them or coaching them on what to say.
Demonstrating damages
Being able to show the damages that the breach of contract caused is also important. This can include financial losses, reputational damage or loss of business opportunities. Financial records, business records and expert testimony concerning these impacts might be necessary.
Protecting personal and company interests
A business owner who’s dealing with a partner who breached their partnership agreement should ensure they take steps to protect themselves and their company alike. Working with a legal representative who can outline the potential problems and offer solutions is a good way to get started.