A contract dispute typically arises when you or your client disagrees with the terms or definitions of the contract. Contractual disputes, if not handled properly, can be expensive and time-consuming, leading to litigation, and harm to your business relationships and reputation. So, what should you do if your company is the target of a contract dispute?
What are the Causes of a Contract Dispute?
A contract needs several components to be valid. The terms of the contract shall be fully understood by and agreed to by the parties. The contract is typically not legally binding and can be contested in court if there is no shared understanding or an intention to enter into a contract on the specified terms. A contract should only be entered into by parties who are of legal age.
A contract must be formed by completing several steps. This comprises:
A proposal is being made.
A decision to accept that offer.
A means of compensation or consideration in exchange for the goods or services related to that offer.
Common Contract Disputes
In a business setting, any party, including your client or suppliers, could be involved in a contractual dispute. Conflict examples include:
Problems when your client reads your contract.
Concerns about an offer you made in a contract.
Differences of opinion over the meaning of technical terms in a contract.
Fraud, such as a party claiming they were compelled to sign your contract.
Disputes arise when the parties to a contract fail to honour their original agreements made months or years ago.
Errors in the contract terms that you’ve acknowledged.
A party’s performance of their obligations under a previously formed contract, or the instances in which they have failed to fulfil their obligations, may also be in dispute. This is referred to as a breach of contract. A seller who fails to deliver goods to a customer could serve as an example.
Resolving a Contractual Dispute
The most crucial thing is to try to settle the situation as amicably as you can in the event of a contractual dispute. Getting the best legal representation will help you find the best solution. Try to come up with a solution that:
Prevents the dispute from going to court to save money and time.
Doesn’t involve more people than are required to keep the conflict in check.
Isn’t time-consuming and has no impact on how your business is run.
You can protect your reputation and current business relationships by handling the dispute carefully.
We offer a free consultation to go over your case, and our emphasis is on custom solutions that safeguard your financial interests and way of life. When developing a legal plan, our team will always take into account the industry you work in. By creating and interpreting documents, we can also assist you in averting conflicts and preserving your business commitments. Contracts, director service agreements, shareholder agreements, and partnership agreements fall under this category.
If your business is involved in a contract dispute or you wish to pursue a claim on behalf of your business, contact us online or by phone at 0208 769 6739 to arrange an appointment. A commercial litigation solicitor will be in touch with more on how we can help you.