A Business Owner’s Guide to Commercial Disputes
When you’re running a business, you’re bound to hit disagreements with other key stakeholders. Whether you’re disputing a contract or missed a deadline, things can get sticky when communication breaks down. How should you handle these situations?
Read on to find a business owner’s guide to commercial disputes!
What Is a Commercial Dispute?
When you drafted your business plan, you probably didn’t count on getting into legal entanglements. But when someone fails to fulfill a contractual promise, you may enter into commercial dispute resolution. The individuals at odds can be from different organizations, or it can be an internal dispute.
Commercial disputes can result from missed deadlines on a shipment or unauthorized pricing changes. Failing to fulfill a contractual obligation or provide the right service can cause them, as well. And zoning disagreements can result in a commercial property dispute.
Evaluate Contract Details
Before threatening legal, confirm that you’ve taken all other actions possible. You should consult your contracts to see if there is any language dictating protocol to resolve disputes. For instance, the contract may indicate that you need to try Alternative Dispute Resolution (ADR) before heading to court.
ADR uses a healthy dose of negotiation or mediation to avoid litigation. In other words, the two parties at odds will meet and try to come to an agreement. Lawyers may be present to help negotiate.
With mediation, a third party will be present. This form of ADR also happens outside of a courtroom. Just be aware that an outcome may end up as binding, meaning that no further action in the courts is needed.
ADR is cheaper and easier than going to court. Resolving a breach of contract, for instance, could take months in court. You’re better off trying ADR first!
Pursue Commercial Dispute Resolution
Ultimately, you may need to call a commercial dispute lawyer for help. If you move beyond mediation to arbitration, you’ll be better off having a lawyer advocate on your behalf.
Even though arbitration won’t happen in a traditional courtroom, you’ll still need to plead your case before a neutral person or party. And the outcome will be delivered to a court. Once approved, it will be binding.
Turn to Gorvins LLP for help with commercial contract disputes. Since the outcome of the arbitration is legally binding, you want to be satisfied with the parameters. And if the situation escalates to litigation, you want to be ready.
Seek attorneys who can explain what an arbiter’s decision actually means. And, of course, look for ways to settle commercial disputes without the expense of a civil trial!
Learn How to Handle Commercial Disputes
Commercial disputes can be a headache and distraction from moving forward with business. You’ll want to read the fine print on contracts or other documents to determine the next steps. And then you’ll want to arm yourself with legal help to get the outcome or compensation you deserve.
Find more tips to keep your business in good shape. Check back for new articles soon!