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What are common business disputes?

On Behalf of | Sep 16, 2022 | Business & Commercial Law

Starting a business may feel like the most challenging part of the process. However, if any of your contracts wind up in court, you may soon find that is not the case.

Contract challenges frequently happen, especially if specific terms and conditions are unclear when drafting the agreement. Some disputes arise more often than others, so getting an idea of what to avoid may help before you sign on the dotted line.

What happens if one party does not honor the contract?

The most common contract dispute arises when one party decides not to do as set out in the agreement. This results in a breach of the contract and may lead to action in court or otherwise. The non-breaching or innocent party may have the right to force the party to complete the terms set out or cancel the contract. If the breach resulted in any kind of financial loss, the party responsible should pay the innocent party.

What is a partnership dispute?

Another contract you may not consider is the one that formed your business relationship with others. A partnership agreement is a contract that sets out the terms of each member’s participation in the business. If one member does not pull his or her weight, the company may falter. Partnership disputes arise regularly, and if the agreement is not ironclad, it may cause serious legal and financial repercussions. In some cases, you may have to shutter your business.

With so many facets of your business depending on other people fulfilling their obligations, contracts become central to your success. Make sure your business has protections in place in every contract you enter.