While your business partnership may have started well, what happens when one party becomes unhappy with the circumstances of the agreement and seeks to dissolve it? Often, disputes prompt partners to file litigation; however, arbitration may provide a more beneficial solution.
The National Law Review notes that arbitration can reduce the time and expense often connected with cases that involve the dissolution of a business partnership, and it may have other benefits when it comes to solving these problems as well.
Unlike with litigation, both you and your partner must agree to attempt to resolve the dispute through arbitration. Contracts related to the action may include a variety of points, such as:
- The scope of the case
- The amount of privacy desired
- An agreeable end result for both parties
You may want to consider each of these details carefully before you agree to arbitration.
While arbitration tends to cost less than litigation, you may still face unexpected expenses. One issue that may raise the cost is unequal control of the business, such as if your partner has more capital than you and as such has more control of the details of the arbitration itself. This can cause the process to stall or fall apart altogether, leaving you with no choice but to move ahead with litigation.
The individual details of your partnership case can affect how quickly and efficiently arbitration works. If your business partner refuses to cooperate, then you may want to file an action in court as an alternate means for settling your dispute.