50/50 Client

Discussion in 'Growing and Managing a Business' started by Sabyre, Oct 9, 2012.

  1. Sabyre

    Sabyre
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    Hi There,

    We are an IT company and service primarily other businesses. In the 6 years we have been around I have yet to be in this situation and I am seeking some advice.

    One of our clients took a partner last year and recently known, the partineship is 50/50. Last week it got ugly and I find myself in a position of tug-o-war. I am litterly stuck in the middle of conflicting requests. In some instances it has become personal.

    I am concerned for the protection of our company. With two conflicting partner requests legally which do you honor? One partner asks for one thing and the other objects.

    This client's company in my opinion will split. Which direction I do not know. I do know that one of the partners has offered a buyout.

    With niether having power of authority which direction do you go?
     
  2. Business Attorney

    Business Attorney
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    Under U.S. law, every partner has the right to bind the partnership, but I wouldn't step into the mess if I were you. You are taking a big risk whichever side you choose. It is unfair for them to put a service provider in the middle of their dispute, but that seems to be what they are doing. I would tell them to work out what they want you to do and give you clear instructions. Otherwise, I would sit on the sideline.
     
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  3. Fergal

    Fergal
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    I agree with Business Attorney. My suggestion would be to communicate your concerns to the client company. Explain to them that you are receiving conflicting instructions. Ask them to clarify the issue as regards to whom you take instructions from. Perhaps they can agree that you have a single point of contract within the company.
     
  4. altcom

    altcom
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    We have client also facing the similar situation; the final decision we make is work for money. During that period we temporary discontinue our services, whoever pay the bill we follow the instruction.
     

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