Before you start a new company in New York, it’s understandable to want extra help by bringing on a new business partner. Hopefully, your new partnership with one or several people goes well. If it doesn’t, you might have a cause of action. This occurs when one partner refuses to comply with a contract’s terms. With that in mind, here are a few common causes of action in a business partnership.
Breach of contract
One of the most common causes of action is a breach of contract. For a breach of contract to exist, you’ll need to prove that a contract exists, a breach of this agreement took place and you suffered damages from this breach.
Breach of implied conditions
If a specific contract breach didn’t occur, but there’s a disagreement between you and a business partner, this situation might be a breach of implied conditions. This type of breach is another common issue that often becomes a business litigation matter. A business partner can engage in this type of breach through self-dealing or creating a conflict of interest.
Written clause breach
A breach of written clause occurs when one party does something that contrasts any implied or written conditions in their involved contract. To ensure that this kind of breach took place, make sure you thoroughly read your company’s contracts. By doing this, you can determine where a written clause breach occurred.
In closing, there are several causes of action you can take after a business partner breaches their contract. Considering the seriousness and potential complexity of a contract breach, it will likely be in your best interest to contact a business law attorney. Hiring an attorney may help your company stay protected during a dispute with a business partner.