Can I hold my business partner accountable?

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.