Given the choice, most people would wish that business disputes never occur. But, that’s not reality; they do happen, sometimes more frequently than we’d like. Properly managed, conflicts can bring about positive change and growth. Sometimes, though, an issue will leave all parties completely unable to agree. In such a case, without appropriate action the situation can devolve into one that threatens the very existence of the business. Clearly, learning how to deal with disputes is vital. This post takes a closer look at this crucial area of business and offers some sage advice.
When a conflict arises, it is important to understand the source of the problem before attempting to resolve it. Keep reading for more on this:
Most relationships between humans, whether married couples or business partners, will involve disagreements now and then. It is a reality that is easy, but costly, to overlook. If business owners accept this reality and commit to determining how disputes will be resolved from the outset, they will be miles ahead of the pack. For instance, the owners could discuss the possibility of including mediation or arbitration provisions in their governing documents, whether that includes an Operating Agreement, Partnership Agreement, Shareholder Agreement, a Buy Sell Contract, or a combination of governing documents. Mediation and arbitration are typically far more cost-effective options than litigation, but they are not bound to engage in mediation or arbitration unless they agree to such processes ahead of time. Read more at Gehres Law Library…
Understanding that business disputes will occur is important. Planning for them beforehand is crucial.
So, what are the kinds of disputes that typically take place? Also, what causes them to arise in the first place? The following post seeks to answer these questions:
The business world runs on contracts. They are what hold businesses and professional relationships together. But what happens when a party doesn’t live up to their end of the deal?
This is a breach of contract and the reason for the majority of business disputes.
Below, you’ll find some common reasons for breach of contract. Before we get to that though, we’ve listed some ways to protect yourself from the possibility of a breach of contract disputes:
- Get every agreement in writing. When the goings are good, a handshake may feel sufficient for business deals, but an oral contract isn’t worth the paper it’s written on.
- Draft dispute resolution clauses. These will map out what happens in the event of a dispute.
- Avoid miscommunication. Disputes often arise because people don’t know what they should be doing. By making sure everyone is on the same page, major issues and many disputes can be nipped in the bud. Read more at JJH Law…
Having agreements in place before trouble comesd is simply good business management. They will help to guide your decisions and avoid the murky waters of litigation.
When a breach of contract is charged — whether it’s leveled against you or by you — what should you do? This piece has some good suggestions:
The following is a discussion of the legal concept of “breach of contract” and an overview of your legal options should such a breach occur.
What Is a Breach of Contract?
A business contract creates certain obligations that are to be fulfilled by the parties who entered into the agreement. Legally, one party’s failure to fulfill any of its contractual obligations is known as a “breach” of the contract. Depending on the specifics, a breach can occur when a party fails to perform on time, does not perform in accordance with the terms of the agreement, or does not perform at all. Accordingly, a breach of contract will usually be categorized as either a “material breach” or an “immaterial breach” for purposes of determining the appropriate legal solution or “remedy” for the breach. Read more at FindLaw…
Whether you are currently dealing with a business dispute or need to have contracts drawn up to avoid problems, it’s critical that you work with an experienced attorney to protect your interests. Jonathan Meek at Meek Law Firm is one of the top business law attorneys in the Charlotte metro region. Schedule a consultation appointment with him by calling (704) 848-6335, or use the contact form on our website. We look forward to hearing from you.