Billy and Marcy want to sue their business partner Jack because Jack took out a loan the company couldn’t afford to pay, and now the company is broke.
But Jack was acting in good faith and was doing his best to make the company successful. This kind of disagreement feels bad, but still, Jack should not be personally liable for company debt.
A business partnership is like a marriage, and unfortunately, disagreements between partners are common. For those situations, I make sure that the operating agreement includes a provision that protects the owners from personal liability.
When starting a business with a friend, of course, you trust each other to do their best, but you also want to limit your exposure in case of mistakes or bad results.
Have you ever given up on an argument, saying “I guess we’ll have to agree to disagree?"
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