The moment a partner wants out is the moment the operating agreement becomes real. Here's how to think about it.
Partnership disputes are different from most business conflicts. You can't just fire a partner. You need to follow the agreement — or litigate.
This is where your operating agreement either saves you or costs you. If you don't have one, you're now learning Ontario's default partnership rules — and they're not in your favor.
Mediation is faster and cheaper. Litigation is slower and more expensive. The operating agreement tells you which one you're stuck with.
A good operating agreement forces mediation first, then arbitration, then litigation as a last resort. A bad one has no roadmap at all.
How much does the departing partner owe? How much do you owe them? These questions should be answered before the dispute starts.
If you have a partnership and no operating agreement, write one. If you have an operating agreement, read the partner exit clause. You'll be glad you did — either before the problem starts or after it's too late.
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