Here are the steps to follow if there is a breach of a partnership agreement:
Review the partnership agreement:
The first step is to review the partnership agreement to identify the specific provisions that have been breached.
Communicate with the partner:
The next step is to communicate with the partner who has breached the agreement. This can be done in writing, such as through a letter or email, and should clearly state the breach and the action that is required to remedy it.
Attempt to resolve the issue:
Try to resolve the issue through negotiation or mediation before taking legal action. This can be done with the help of a lawyer or mediator to facilitate the discussion and find a mutually agreeable solution.
Consider terminating the partnership:
If the breach is severe and cannot be resolved, it may be necessary to consider terminating the partnership. The partnership agreement should specify the terms of dissolution and how assets and liabilities will be distributed.
Take legal action:
If all attempts to resolve the issue have failed, legal action may be necessary. This can include filing a lawsuit to seek damages or specific performance, or filing for arbitration if the partnership agreement includes an arbitration clause.
It is important to follow the steps outlined in the partnership agreement when addressing a breach, as failing to do so can result in additional legal issues. Working with a lawyer who specializes in partnership disputes can help ensure that the process is handled correctly and that the interests of all partners are protected.