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Law Office of Richard Kuslan LLC
Commercial Disputes and the Law
Poor Planning and Informal Record-keeping Pave the Way for Future Problems
By Richard Kuslan, Esq.
When business is good, business partners can often resolve differences of opinion on their own. Cooperation isn't for charitable purposes, but to protect each party's self interest. Minor disagreements are usually disposed of quickly in the interests of profit and time-saving. It is in the best interests of both to come to agreement quickly.
When a dispute escalates in severity, partners will attempt to protect themselves, throw cooperation to the winds and declare war, and civil litigation often ensues. An escalation in emotion increases the complexity involved in resolving a dispute. How much more the case when a business fails!
A small business will not necessarily succeed. According to the Small Business Administration, about one- third of all small businesses shut down after two years of operation. After four years of operation, only about 44% of new small businesses remain in operation.
In such a case, parties attempt to save assets for their own benefit and decrease their obligations. When partners begin to blame each other, things can really heat up. Then they think about hiring an attorney. But shouldn't they be thinking more proactively, earlier on?
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