This litigation is widely recognized as Shareholder agreement or it would not be misnomer to state it as a life and soul of any business partnership. Prior to governing the partnership, it is very essential to have a set of agreement about the rules and regulations which every partner will follow. So, that you along with your partner can beforehand decide what is deemed equitable in case of split. The shareholder agreement not only determines about the stake of each partner and how profit or loss will be distributed but also it is an essential element for smooth functioning of an organization. Some of the Shareholder and Partnership Disputes are:
- Valuation of share
- Change in leadership or management
- Financial benefit to a shareholder to the detriment of other shareholders
- Buy out or purchase of shares
- Misappropriation of funds
- Breach of fiduciary duty
- Direction of the business
- Oppression by majority shareholders
- Inability of the partners to cooperate
- Conflict of interest
Apart from these partnership disputes, there are many other issues which you can face when you are in partnership. The breach of contract litigation is the recurring surrey partnership dispute. These are needed when provision of contract is not honored. There are three elements of breach that a plaintiff must prove.
First Element of a Breach of Contract: It states that at the time of the breach of lawsuit, the following elements should be there:
- A contract
- The one who is obligation under contract
- Reason, why the plaintiff didn't perform
- Defendant's Breach
- Plaintiff's damage arising from breach of contract.
Second element of a breach of contract lawsuit: It states that you cannot sue the other party for breach of contract till the time you haven't executed your duties stated in the contract.
Third element of a breach of contract lawsuit: It states that both the parties are required to follow the terms of the contract timely. Any deviation from the terms of contract will leads to its breach.