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Can I Sue My Business Partner for Negligence?

contract-litigation-review

Having a business partner can be fun; from sharing new ideas to insights, it is sometimes quick to execute specific business assignments with a business partner. However, things may go sour when either of the parties starts to embrace negligence. Most business partners often ask: Can I Sue My Business Partner for Negligence?

The short answer to this question is YES. You might sue a business partner if your partnership agreement stipulated that your partner should work and not neglect duties.

Grounds for Suing a Business Partner for Negligence

A business partner is one or more people coming together to run a business. As a business partner, each person plays a role in decision-making. While some find it comfortable working and partnering with others, sharing the power of decision-making may not be their thing.

Sometimes, a business owner may force others to agree, even without their consent. General and limited are the two types of partnerships. The former states that business owners hold equal powers and are privy to business profits. They also have the same decision-making powers, including those affecting business management. On the other hand, they will also be responsible if businesses are out of cash.

A limited partnership means that partners can fully supervise and control the company. They hold the power other partners don’t have. They don’t enter into binding contracts but are exempted from the debts and obligations of the business.

What Should I Do in The Case of Negligence by A Business Partner?

Solving business partners’ issues does not require taking legal action at times. However, sometimes you may have to settle only for business litigation. You may sue your business partner for the negligence of duty.

Suing for Negligence

Suing your business partner for negligence is not only the issue to focus on, but you must be ready to prove things to make it a valid claim. If you are suing your business partner for negligence, you must be prepared to show that:

●  Your business partner didn’t act as a reasonable business partner would have done under a similar condition

●  Your partner’s actions have brought some setbacks or damages to the business

If a business owner can prove these points genuine, he has everything needed to get started with a legitimate negligence claim.

A business partner owes the partnership a duty of care to make decisions in good faith. If they fail to do this, then there may be a basis for a negligence claim.

Conclusion

You can sue your business partner for negligence, provided that it is stated in your agreement that your partner will not neglect any designated duties. However, an agreement should always spell out a partner’s duty clearly.

By : admin | January 15, 2023 | Business Litigation