Question
Can I hold my business partner accountable?
My partner’s mistakes caused us to lose a contract and damaged our reputation—what are my options?
Answer
Accountability usually starts with your partnership agreement. If it defines roles, duties, and consequences, those terms guide what happens next.
If there’s no written agreement, courts look at how you actually run the business—who makes decisions, signs contracts, and shares profits or losses.
The good news is that generally, partners owe fiduciary duties to each other, such as care, loyalty, and good faith. If a partner violates these and causes harm—like lost revenue or reputation damage—you may be able to seek damages, adjust roles, or even end the partnership in serious cases.
Going forward, create a detailed agreement that outlines responsibilities, decision-making, dispute steps, and buyout terms. It prevents confusion and speeds up solutions when problems arise.
What to consider in your specific situation
While these points apply broadly, your options depend on several unique factors, such as:
- Your partnership agreement (or lack of one)
- Nature and impact of the mistake
- State partnership and fiduciary-duty rules
- Prior communications and decisions
- Financial/reputation damage and business goals
Since every business and partnership is different, you can use Rocket Copilot or a Legal Pro review to get more information about your specific situation and possible next steps.
At Rocket Lawyer, we follow a rigorous editorial policy to ensure every article is helpful, clear, and as accurate and up-to-date as possible. This page was created, edited and reviewed by trained editorial staff who specialize in translating complex legal topics into plain language, then reviewed by experienced Legal Pros—licensed attorneys and paralegals—to ensure legal accuracy.
Please note: This page offers general legal information, but not legal advice tailored for your specific legal situation. Rocket Lawyer Incorporated isn't a law firm or a substitute for one. For further information on this topic, you can Ask a Legal Pro.
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Disclosures
- This page offers general legal information, not legal advice tailored for your specific legal situation. Rocket Lawyer Incorporated isn't a law firm or a substitute for one. For further information on this topic, you can Ask a Legal Pro.