Contract disputes can happen with any business transaction. Essentially, a contract dispute arises when there is a disagreement about a particular transaction that involves multiple parties. Due to the nature of business transactions, there are many types of disputes. Both small and large companies are vulnerable to issues arising from contracts that are currently being executed. No matter if the dispute is about the type of work performed, the length of time it takes to deliver the services or goods, payments, etc. it can be stressful, time-consuming and expensive for one or all parties involved. All contract disputes don’t require consulting with business lawyers. However, if you are considering going to court and/or arbitration over your dispute, it is typically in your best interest to work with a proven business lawyer to ensure that your company is appropriately represented. Business law is complex and can be confusing to even the most intelligent among us (if they are not specifically trained in this area of law). Learn more about when you need a lawyer for contract disputes below.
When You Need a Lawyer For Contract Dispute
When you enter into a formal agreement with another business and/or person there is always a chance that disputes can occur. In general, it is recommended to work with a business attorney throughout the life of your business. Their worth is made apparent when drafting new contracts or when you have contract disputes with another company or person. It can be difficult to resolve such issues on your own. This is especially true if the other parties involved in the dispute have hired legal representation. Business lawyers are helpful throughout all stages of the dispute. In many cases, they can help both parties to reach a fair resolution before the disputes go to a long and drawn-out court case. Though attorneys can be helpful when a contract dispute arises, it is also advisable to work with a business attorney as the agreements are being formed and the contracts are drafted. This can be an effective strategy for avoiding disputes after the contract has been executed.
Types of Contract Disputes
As previously mentioned, contract disputes come in all types. Some are due to mistakes made at the beginning of an agreement, others occur as a result of nefarious behavior(s) by one or more parties. Listed below are some of the more common types of contract disputes.
- No Written Contract: Oral contracts create unnecessary space for misunderstandings. They make it nearly impossible to prove the obligations of each party.
- Non-Compliance: If one party (or both) does not fulfill their obligation(s) per the language of the contract they are not in compliance. This can include not completing a project in the agreed timeframe, skipping steps, etc.
- Lack of Clarity: Contracts written with “loose” language leaves room for confusion and disagreements about how it’s supposed to execute what and how it should be accomplished.
- Errors: Contract errors often occur when one party creates a contract without including the other parties and the contract is not reviewed by an attorney from each party.
- Ommissions: A contract omission can be just as problematic as an error. If obligations are not clearly and fully stated, it can often lead to disputes.
Issues That You May Not Need a Business Lawyer For
In the world of business, it is advisable to work with a business lawyer when any type of contract is being executed or dispute handled. However, if your contract dispute is about something relatively small and financially innocuous, it may be okay to handle it with an attorney. It is best to conduct a cost-benefit analysis and if you find that you stand to lose more than it would cost to pay an attorney, your best bet is to hire one.