The Elliot Legal Group, P.A. Offices | Fort Lauderdale and Miami

3101 N. Federal Hwy., Suite 609,
Oakland Park, Florida 33306

*Licensed in England and Wales, Florida and Washington D.C.

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754-332-2101

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broward county business lawyerThere are a variety of reasons that business partners may encounter disputes. Partners may disagree about the direction of the company, or one partner may be unhappy about how another partner has managed their responsibilities. Disputes may also involve allegations that one or more partners have acted inappropriately or illegally, such as by misappropriating a company’s funds for personal use or making decisions meant to benefit one partner at the expense of other partners or the business as a whole. When partnership disputes arise, partners will want to understand the methods that may be available to address these issues, reach agreements when possible, or determine how the end of the partnership will be handled.

Dispute Resolution Methods for Business Partners

If partners want to be able to resolve their differences and continue working together to manage their company, they may be able to work together to reach agreements on how the issues in dispute will be addressed. However, this is not always possible, and partners can often benefit by receiving assistance from outside parties. The methods of resolving disputes in these cases may include:

  • Mediation - Partners may work with a neutral mediator to determine the best ways to resolve any disputes. Since the mediator will not represent either party, they will be focused on finding ways to reach agreements on any issues that are being disputed. During mediation, the partners can make decisions about how they will address each partner’s ongoing concerns, and they may create agreements that will allow them to work together going forward. If they decide to end their partnership, they can make decisions about how this will be handled. Mediation is a cooperative process, and any decisions made must be fully agreed upon by both parties.

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illinois business lawyerWhen parties who have entered into a contractual agreement encounter disputes in which one party allegedly breached the contract terms, litigation may be required to resolve these issues. In many cases, the plaintiff in a breach of contract case will seek to recover damages from the other party, and these damages may address the losses that occurred because of the breach, including both direct and indirect losses. However, a plaintiff may also ask the court to require the defendant to take or refrain from certain actions. This is known as injunctive relief, and it will usually only be granted if a plaintiff meets specific legal requirements.

Injunctions and Specific Performance

In many cases, a contract will include an injunctive relief clause stating that one or both parties are entitled to relief to prevent them from suffering harm due to a breach of contract. If a party pursues litigation to address an alleged breach of contract, it may ask the court to issue an injunction against the other party. In some cases, temporary injunctions may be used while a case is ongoing, or a permanent injunction may be issued at the conclusion of the case.

In many cases, an injunction will prevent a party from taking certain actions. For example, if a former employee is accused of violating a severance agreement by failing to follow the terms of a non-compete clause, their former employer may ask the court to issue an injunction preventing the employee from engaging in competitive activities. Other types of injunctions, which may be known as mandatory injunctions or specific performance, may require a party to take certain actions, such as performing the work that a person agreed to do as part of a contractual agreement.

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Employment contracts, severance agreements, and other types of contracts will often contain clauses that restrict a person from taking certain actions or engaging in certain activities. These are known as “restrictive covenants,” and they are used to protect the interests of a company, ensure that its trade secrets and proprietary practices will not be disclosed, and prevent unfair competition. Restrictive covenants may include both non-compete and non-solicitation agreements. If a person is accused of violating these agreements, a company may pursue litigation to address the harm suffered due to the violation. By understanding what these agreements cover and when they may be enforced, the parties in these types of disputes can determine their best options for resolving any disputes that may arise.

Differences Between Non-Solicitation and Non-Compete Agreements

Restrictive covenants place limits on the types of business activities that a person can engage in. A company may ask employees to agree to these terms to ensure that a person will not engage in unfair business practices that may cause the company to suffer financial losses. 

Non-compete agreements will place restrictions on the types of work or business activities a person can perform. These clauses may state that a person cannot work for a competitor of the company after the end of their employment, or they may be prohibited from starting a new business that directly competes with their former employer. 

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Miami Business Contract LawyerMost businesses rely on different types of contracts to make sure agreements are legally binding. These may include vendor contracts, partnership agreements, employment contracts, and multiple other types of business-related agreements. In cases where one party does not fulfill the terms of a contract, the other party may pursue litigation to enforce the contract’s terms. However, there are some cases where it may not be possible to legally enforce a contract, and business owners will want to understand the potential issues that may make a contract unenforceable.

Making Sure a Contract Is Enforceable

A contract will need to meet a number of legal requirements, and one party may believe that the contract is invalid because it violates the law or does not include certain terms. Some issues that may affect the enforceability of a contract include:

  • Offer, acceptance, and consideration - These three elements must be included in every contract. One party must make an offer, and the other party must accept that offer. Each party must also receive consideration in return for meeting their contractual obligations, and this may include monetary payment, the receipt of goods or services, or other benefits. If these elements are not clearly defined in a contract, it may be unenforceable.

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Miami  Business Litigation Lawyer

In many cases, business partners are able to work together for the benefit of themselves and their company. However, there are a variety of situations where partnership disputes may arise, and in some cases, partners may be unable to resolve these matters and continue working with each other. Disputes that cannot be resolved may lead to a “business divorce” in which partners decide to stop working together. While some partners may be able to reach an agreement on how to dissolve their partnership, others may need to pursue business litigation to protect their rights and interests.

Options in a Business Divorce

The procedures followed during a business divorce will depend on a variety of factors. These may include whether this type of situation was addressed in a partnership agreement, whether one or more partners wish to continue operating the business after a partner leaves the company, and whether a partner believes that one or more other partners have acted improperly or violated the law. Partners will also need to address issues such as liability for business debts and taxes and the methods used to calculate the value of business assets.

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