Resolving a Business Partnership Dispute Without Formal Agreements

Background

Two individuals entered into a business venture without any formal agreements — no contracts, no shareholder terms, and no written operational structure. The business had grown, but interpersonal tensions reached a boiling point, and the partners agreed that dissolving the business was the only way forward.

Legal Challenge

With no foundational documentation outlining roles, ownership percentages, or exit terms, each party presented differing narratives:

1. One claimed ownership based on originating the business concept and securing initial property.

2. The other asserted their position as a co-founder, citing advisory contributions and operational support.

This lack of clarity created a legal and emotional gridlock, with both parties at risk of prolonged litigation.

Our Approach

Abii & Associates was engaged to represent one of the parties. Our goal was to:

1. Avoid costly litigation by initiating structured negotiation.

2. Define each party’s contributions and value based on available evidence and industry practices.

3. Propose a fair buyout agreement to end the partnership while preserving our client’s financial interests.

While preparing for potential litigation, we prioritized dispute resolution and strategic compromise to avoid court.

Outcome

Through careful negotiation, our client and the opposing party reached a mutually acceptable buyout structure, allowing each to move forward independently. No court action was needed, and the client avoided excessive legal costs and reputational damage.

Impact

This case underscores Abii & Associates’ ability to resolve high-conflict business disputes, especially in cases lacking formal documentation. Our balanced, cost-conscious strategy helped preserve client value while minimizing legal risk.