If it is assumed that the breach of his fiduciary duty by a partner or the acquisition of partnership equipment and commercial contracts for his own use and profit is illegal, it is clear that the breached obligation derives from the social contract. The ownership interest of a joint tenant in partnership is acquired only through the contractual creation of a partnership; It is only through the contractual obligation to become a partner that one becomes a trustee in partnership. Regardless of the violation of the social contract, there is no unlawful conduct. The judge also clarified that it did not matter whether the amounts due to Golstein were qualified as « damages » (for breach of the social contract) or « compensation » (in the event of an invoice for breach of the partnership obligation). In some cases, the facts would be more of an analysis than another. In 1974, the defendant became a partner of the plaintiff in colonial Studios, whose name was changed to Skylight Studios. Under the social contract, the defendant would have to be the chief operating officer of the partnership, for which he would get a guaranteed draw in return. With the exception of the guaranteed draw, the partnership was equal in ownership and profit sharing. A negotiated solution offers the possibility of restoring the business relationship between you and your partner. Written settlement agreements are usually as binding as other contracts and courts can enforce them. While you may have to compromise with your partner to get their agreement for a transaction, you can avoid costly and time-consuming litigation. You can also consider taking action against him and then offering to agree on terms that are favorable to your interests. Comparisons are often an ideal solution, as legal and legal costs increase rapidly and are rarely inexpensive and do not guarantee the attribution of damages.
It`s always a risk of taking issues to court, which is why mediation is so popular. Dissolution under the Partnership Act is left to discretion….