Here’s a problem that cost the parties to a business entity plenty of money, but could have been avoided if the underlying contract was drafted to provide for a way out in the case of hopeless business deadlock. It could happen in the context of a joint venture partnership between two entities, or it could happen in the context of four owner/operators of a business entity. The agreements might provide for dispute resolution techniques, but the big elephant in the room, which no one thinks about, is that despite all the underlying issues, there are State statutes pursuant to which there can be court-ordered dissolution of the business. (more…)
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