Most Common Contract Disputes

As a business owner, it’s good to think positive to some degree, but you need to be realistic. If you’re in business long enough, you will inevitably face conflict. Even with a contract in place, you can face disagreements that can quickly turn into legal battles.

Sometimes the contract isn’t fully clear about what the business or customer is expected to do. Perhaps the financial details are not thoroughly outlined.

Issues like these can lead to contract disputes. Here’s a look at the most common disputes businesses face.

Material Breach

A general material breach is a huge red flag when it comes to contracts. It means that one party has refused to follow all of the terms in their agreement. The  breach is so severe that it renders the contract useless. These breaches often end up in the courtroom so that the other party can attempt to collect damages caused by the breach.

Company Contracts

Your business likely works with other companies and has countless contracts formed with them. A breach in any of these agreements is called a company contract breach. These breaches can range from relatively minor to extremely serious. They can cause a lot of damage, so it’s best to try to minimize them by using mediation or arbitration.

Consumer Contract Disputes

Consumer contracts are different in that they don’t require a signature. Every time a business sells a product to a consumer, there is an unwritten contract. It is basically assumed that the company will give the consumer a safe and functional product in exchange for payment. If the customer receives a product that is defective in some way, the business commits to providing a full refund. While a business may try to breach this contract by denying a refund, it is in its best interest to avoid litigation.

Commercial Leases

Commercial lease disputes between landlords and businesses are common due to the amount of money involved. The most widespread issues involve maintenance and repairs and withholding rent. To prevent these issues, the commercial lease agreement should ensure that each party’s rights and responsibilities are clearly outlined. They should also be aware of the repercussions they could face for breaching the contract.

Non-Compete Agreements

Non-compete agreements typically occur between employers and their employees. They typically state that an employee cannot work for a competing business for a set period of time.

Non-compete disputes can be tricky to work with because the agreement itself is too broad to be enforceable. In some cases, they may turn into a long process in which employers may pursue damages against the former employee.

 Learn More About Business Contracts

All businesses need to have contracts in place for the work they do. However, there can be disputes among the parties, making business operations tense.

Orlando business contracts lawyer B.F. Godfrey from Godfrey Legal understands that sound legal contracts are the foundation of success in business. We can help you avoid common disputes and mistakes. Schedule a consultation with our office today by filling out the online form or calling (407) 890-0023.

Source:

revnue.com/blog/common-contract-disputes/