When Business Relationships Go Sideways

Starting a business with someone? It usually feels like you’re on a roll—same goals, same hustle, maybe even the same dreams. But let’s not pretend that lasts forever.

Over time, things shift. People grow apart, plans change, and sometimes it just… goes sideways. You’re suddenly in a spot where you and your partner (or shareholder) can’t see eye to eye.

That’s when having a reputable civil litigation lawyer in Edmonton—someone who’s been through this stuff—can really make a difference.

Before the cracks turn into a full-on collapse, you need someone who knows how to step in and sort it out.

Hi. In today’s blog, I will be talking about all the reasons why business relationships can turn sour. And wait! That’s not all. I will also tell you all the different ways in which you can deal with such issues legally.

So, if that’s what you want to know, you have come to the right place. Therefore, keep on reading this blog till the end, and thank me later…

What Leads To Dispute In Business Relationships?

Well, let’s be honest, business relationships can be really tricky. And there are several things that can lead to problems and issues in that. But what are the most common ones?

Well, here is a list of all the common reasons that can make your 

Disagreements Over Decision-Making

This is a big one. Decision-making can turn into a battlefield real fast. In partnerships, it’s usually supposed to be a team thing, right?

But when one person starts making big calls without looping in the other—yikes. Or maybe you’re a shareholder and feel like the board’s taken a left turn without telling anyone.

Doesn’t matter if it’s about growing the business, hiring, or just everyday stuff—once someone feels sidelined, things get tense.

And yeah, if big money’s involved? That tension turns up to eleven.

Unequal Contribution and Effort

Here’s where it gets personal. Let’s say the business starts rolling and suddenly, it feels like one person’s carrying the load while the other’s… well, not.

Maybe they’re still technically doing their part, but the balance’s off. One of you is putting in the hours, handling the chaos, investing more time (and maybe cash), while the other kinda coasts.

When profits are still split 50/50? That burns. Resentment builds, and then you’ve got someone quietly fuming over every paycheck.

Profit Distribution Disputes

Money makes everything louder. Even tight teams can crack when it comes to how profits get split.

You’d think it’d be simple—expenses, salaries, bonuses—but nope. One person thinks they’re being shorted, another thinks the other’s overpaid.

Shareholders get ticked off when dividends don’t show up or suspect someone’s hoarding funds behind the scenes.

These fights? They’re messy. Especially when you don’t have a solid agreement to fall back on—or worse, you do, and no one’s following it.

Breach of Fiduciary Duties

This one can hit hard. There’s this basic rule in business: act in good faith, do right by the company.

But when someone starts playing dirty—using company funds for personal stuff, making deals that only benefit them, or even launching a competing gig on the side—that’s a whole new level.

Suddenly, it’s not just about business; it’s about trust. And when trust goes out the window, legal action usually comes flying in right behind it.

Exit Strategy and Buyout Conflicts

Nothing flips the script faster than when someone says, “I’m out.” The problem? Most folks don’t plan for exits until it’s already messy.

You get stuck fighting about what the business is worth, who gets what, and what counts as a valid reason to leave.

Without a clear agreement, it becomes a staring contest—and sometimes it drags on while the whole company just… sits there, stuck in limbo.

Failure to Follow Governing Agreements

You’d be surprised how many people forget—or just ignore—the rules they signed up for. Share transfers happen without notice.

Voting procedures get skipped. Someone suddenly violates a non-compete like it’s no big deal. But it is.

That kind of stuff might seem small at first, but it snowballs. Next thing you know, you’re knee-deep in legal letters trying to untangle who broke what.

When Should You Seek Legal Help In Business Relationships?

Now this is a great question. If you are confused about where you need to seek legal assistance in such a scenario, you are not alone in this.

According to experts, the business partners should try seeking legal advice when a particular issue escalates and no amount of negotiation saves the case.

If you have, let’s say, tried different dispute resolution methods but have not really been able to get anything out of it, it might just be the right time for you to hire a corporate lawyer.

A business attorney who has a lot of experience in the field of law will be able to provide you with the ultimate guidance. With their help, you will be able to solve the issues and even have access to other alternative legal remedies.

Here are some of the most common methods of handling legal disputes when it comes to business relationships and partnerships:

Communication

First, if you want to ensure that the issues between the business partners are resolved, it is best that you start with having proper communication. Before you start seeking the legal way out, having clear communication about the concerns becomes very important.

Documentation

Second, we have to take care of documentation if you want to resolve any issues between business partners.

In order to do that, it is important that you gather the evidence. These would include all forms of relevant documents like:

• Contracts.
• Emails.
• Invoices.

Also, if you are able to reach a settlement, documentation will become even more important. This will serve as proof of the agreement.

Alternative Dispute Resolution

Finally, on the list of all the things that you can do to resolve the legal issues in a business relationship are ADR methods. The most common ones among these are arbitration and mediation.

• Mediation: This is a step that you can take when any form of direct negotiation between two business partners fails. In such a process, partners generally take the help of a neutral third party who helps them reach a settlement or middle ground.
• Arbitration: When, for any reason, even mediation becomes unsuccessful, people generally take the help of an arbitrator. These people are neutral and generally make the binding decision in a rather private forum.

Preventing and Resolving Disputes In Business Relationships

The best fix? Honestly, talk more and write things down better. Clear agreements at the start and check-ins along the way save a ton of trouble. But if the damage is already done, don’t wait.

A good lawyer or even a neutral mediator can help cool things down before it turns into an all-out war.

And if splitting ways is where it’s headed, better to make a clean break than drag each other through the mud.

Read Also:

• Attorney vs Lawyer: Are They Really Different From Each Other?
• How Many Times Can You File Bankruptcy? A Detailed Guide
• How a Business Law Firm Can Help You Establish an LLC