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What are the most common disputes a business owner might face?

On Behalf of | May 11, 2021 | Business & Commercial Law, Business Litigation, Dispute Resolution

Although there are certain protocols in place, the life of a business owner does not always run smoothly.

Here are four types of disputes that might arise over the lifetime of a business.

1. Business-to-business disputes

The relationship between businesses is valuable and is normally built around initiatives that provide benefits to both companies. When a significant problem develops, dispute resolution may require professional arbitration in order to salvage the working relationship.

2. Partnership disputes

Though you may not have guessed it, disputes among partners are the most common type of argument in the business world. Usually, this puts leadership teams in different camps. The dispute may arise due to financial issues or disagreement over the direction the company has chosen to pursue.

3. Employee disputes

Employee disputes can crop up over a variety of issues:

  • Disagreement over salaries or payments
  • Poor working conditions
  • Promotion passed over
  • Unfair reason for dismissal
  • Discriminatory practices

Laws exist to protect both the employee and the employer. However, an employee dispute may have to settle in court.

4. Contractual disputes

Breach of contract is also a common problem for a business owner to face. Contracts are legally binding, and it is necessary to uphold the terms. If there is a direct violation of the contract, or if one party fails to act as the contract requires, the next step may be litigation. The parties involved may have to seek legal guidance to help sort the issues out. However, such disputes are not complicated as a rule because the breach is evident.