Breakups are painful and when they happen you have to brace up and move on.

Even in business, breakups happen all the time. How we handle it and how we are able to resolve any pending issue is what is important at the end of the day.

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Please note that the term Partnership as used in this post is used both in its narrow and broad sense.

It refers to any kind of collaboration, Joint venture in business by two or more persons, or between an individual and a company or a company and another company, whether or not they have a registered company, Enterprise or merely collaborating on a specific project.

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I once had to facilitate the dissolution of my clients' partnership relationship and the experience wasn't funny at all.

Thankfully there was no form of hostility whatsoever.

They were smart enough to factor in how disputes and possible exits from the partnership business would be resolved in their founders' Agreement.

The moments when they all had to actually sign the dissolution agreement were simply heartbreaking as they realized the importance of signing the document.

Alas! they did, and according to the terms of the agreement they became officially "divorced".

Disclosures of liabilities were made, assets of the company were distributed, and all accounts were settled. Debtors and creditors were settled and eventually, everyone went his way.

As a legal " midwife" I felt a certain numbness in me, I mean a business I had "nurtured" that had the capacity of becoming something mega is now literally and legally dead. The feeling was like that of a woman who had lost one of her "babies".

As a small business legal consultant, I constantly like to hear that one of the "babies" I birthed is doing awesomely well.

My clients probably had a smooth ride at dissolving their partnership because they had involved a lawyer in their business almost at the start, and because in their partnership Agreement, there had been a clause as to the manner of dissolution.

Not all disputes have to end up in court.

In your Contract or other legal documents between you and the people who you are in business with always include a clause that provides for dispute resolution.

Partnership business is not a do-or-die affair.

So in order to avoid terrible break-ups, and both heart and legal aches, always include an "Exit Clause".

This exit clause should state clearly the circumstance under which a party may walk out of the business including the time frame within which a person may opt-out.

If you are not sure what specific terms you should include in your Agreement, please seek out legal consultation.

Breakups happen all the time, even in businesses so brace up and move on.

Reply to this email and let us give you a hand with your partnership relationship.

#BarinaadaLegal