One of the biggest concerns most business owners have is the threat of litigation happening. And this worry is not entirely unfounded, as a number of businesses will be part of litigation at one point or another, and it can affect the success and reputation of that business. There are many downsides to being part of a lawsuit, from the expenses involved to how much time is spent trying to negotiate, which can then lead to further issues anyway. Litigation can threaten the foundation of any business, so steps should be taken to reduce the chances of it arising.
What causes business litigation?
The primary reason why business litigation happens is when one party accuses another of not honoring their side of a contract. And in many cases, this could have been avoided if the contract was written in a more clear way so everyone understood their responsibilities accordingly. Ambiguous or incomplete contracts can easily lead to disputes between a person and a business, or two businesses. Another common business law issue is partnership disputes. People who may have worked together as friends from the start may end up having different views for the business later on. For instance, perhaps one wants to sell the company and the other doesn’t want to give it away to someone else.
Is it possible to alter the terms of a contract?
You cannot change the terms within a contract without the consent of each party involved. Contracts that are less problematic to update are things like gym memberships or phone contracts, which renew periodically. As an experienced lawyer would suggest, such as a business litigation lawyer Montana residents depend on from Silverman Law Office, PLLC, you must tread lightly when approaching other parties about a potential contract revision. Is it recommended that a lawyer is used to help navigate such a conversation.
What remedies are there for contract disputes?
A business contract that is well-written and clear can help prevent disputes from developing in the first place. But still, it’s possible that one party will change their mind or realize that they are not able to fulfill their end of the bargain. Depending on the situation, the only choice may be to enter mediation where all the parties can discuss the dispute and aim to reach a solution that everyone accepts. If mediation proves unsuccessful, then going to court with assistance from a lawyer, such as a team member Silverman Law Office, PLLC, may be needed.
When trying to run a company, the last thing a business owner should be dealing with is a serious disagreement or accusation. It is important for business owners to take steps now to help keep their business running smoothly, even if disputes do arise in the future. Business owners who want to avoid litigation can take legal precautions and always make sure their contracts are precise and understood by each party. When business disputes happen, it can have a negative effect on profit, operations, and reputation.