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Common causes of fallouts among business partners

On Behalf of | Feb 17, 2022 | investment Partnerships

Some partnerships start with so much promise, only to end up in a sorry state years down the line. It all boils down to falling out among the partners in most cases. No matter your relationship with your business partner, anything can go wrong in business, and friends may become foes.

If you are planning to set up a partnership, you need to know and anticipate these common causes of disputes among business partners.


In most cases, disputes revolve around finances. For example, if one partner feels like they are being shortchanged or there is poor accounting of the business funds, it is likely to cause a dispute since every partner has an interest in the business. Alternatively, one of the partners may feel like they deserve more since they are putting in more work or effort in the business.

Duties and responsibilities

There should be clearly defined roles and responsibilities in a partnership. Sometimes partners may clash over who is in charge of certain aspects of the business when making critical decisions.

Breach of fiduciary duty

If you are in a partnership, your business partner is required to act in the business’s best interests. If they do not, and their actions are fraudulent or only meant to benefit themselves, it may cause a dispute with the other partner.

Be prepared to deal with disputes with your partner

Doing business together will often cause a clash of ideas or opinions between you and your business partner. However, how you handle these disputes will determine the success or failure of your partnership. While it is advisable to try and resolve matters behind closed doors, you still need to be prepared to protect your business interests in case things go all the way.