Any company that has been in business for some time inevitably faces disputes. Although many of these disputes do not require the involvement of a lawyer, talking to one before going forward is a good idea. Protecting your business also means knowing the disputes you are likely to face so you can prepare for them. Visit Aandi Lawyers if you’d like to know more about commercial litigation.
Breach of Contract or Financial Agreements
A breach of contract or financial arrangements is very common between a business and their partners and between businesses and other businesses. They occur when a party in an agreement does not honor the terms of a contract or financial agreement.
Some disputes arise because a contract or arrangement should be specific, clear, and complete. When contracts and agreements are created ignoring these rules, each party tries to interpret them in a way that favors them more. This interpretation and application are what lead to disputes.
Contracts are legally binding and can be breached by a direct violation of the terms in the agreement or the failure to act according to the set terms. When this happens, contacting a corporate litigation attorney Wichita is best. They will help sort things out or help you take the dispute to court if that is required.
It is common for businesses to have partners who have different interests in the business. Because everyone has their thoughts and ideas, disputes can arise when partners do not agree on what to do or the direction to take the company, for example.
Disputes can also occur due to compensation disparities, changes in leadership, hiring policies, and financial issues. A dispute is also likely to occur if there is a breach of fiduciary duty to the business owners or the business by one or more partners.
Disagreement Between Businesses
Businesses are usually in silent agreement with other businesses that they will act fairly and follow the unwritten rules of the fair market. However, some businesses refuse to abide by these silent agreements, usually so that they can beat their competition or benefit from such unfair practices in other ways.
When a business’s actions are seen as deceptive or unfair, that could give rise to business-to-business disagreements. The offending company often will not want to stop because it benefits from it. For this reason, litigation is very common when such disputes arise.
Non-compete Agreements and Contracts
It has become very common for businesses to require that employees who leave sign agreements that they will not open or run similar businesses in a specific area for a particular period. These agreements could also bar employees from working for certain companies and businesses, especially if the other business would benefit from trade secrets known by the employee.
Non-competes can breed disputes where they are so restrictive that it would be difficult for employees to find employment or start their own businesses. Conversely, employees might decide not to abide by the non-compete agreement and do what they have explicitly been asked not to do.
Corporate litigation attorneys have represented both employees and employers in such disputes. They are typically successful in cases where the terms in the agreement need to be narrower or more specific. They have also represented employers when employees have not abided by the terms set in their agreements.
Employee disputes is a very broad term that covers a lot of things and areas. The most common is discrimination based on age, marital status, disability, race, or religion. Disagreements also arise due to salaries, maternity leave, tribunal representation, and unfair dismissal.
For most of these disputes, employees can sue and succeed if they have enough evidence and can show they were treated differently from how other employees are treated. Lawsuits arising from things like overlooked sexual harassment or unfair dismissal have landed employees millions of dollars in settlements in the past.
Repair and Maintenance Disputes
If your business has physical locations, it will require repairs from time to time. This is because property undergoes wear and tear and will deteriorate and age. So, who is responsible for the repairs, the owner or the occupants? Some say the owner because they own the building, while others say the occupant because their activities caused the damage in the first place. This confusion and back and forth can lead to a dispute in cases with a commercial lease.
Debt Collection Disputes
This issue affects any business delivering products and services without an upfront payment. Businesses can require help getting an invoice paid by one of their clients or customers, which can lead to financial issues with the business and require that it takes action.
They can ask their accountant to get in touch with the responsible party. If the party does not pay, the business can move on to debt collection or sell the debt to someone with the time and resources to pursue the payment.
How to Handle Business Disputes
Business disputes of all types can arise at any time. Despite how dire the situation looks, there are several solutions you can pursue.
Keep Calm and Talk to Someone
In business, as in life, it is always best to take time when dealing with something this serious. Take a break, go for a walk, or do whatever you have to so you can stay calm. Once calm enough, talk to a mentor or another business owner to see how they deal with the issue. These disputes are not unique, and you likely know someone who has been through them.
It is always best to avoid venting your frustrations online or on any other medium. Staying friendly and professional can help you resolve the dispute with the other parties more easily.
Keep Meticulous Records
Keeping proper records is the best way to run a business. However, you should take extra care when collecting and handling paperwork from a dispute. You do not want to be put in an awkward position when someone says you said or did something you did not.
Business disputes will always arise when running a business, whether with your partners, employees, stakeholders, or other businesses. Knowing about them and how to handle them is the best way to be prepared for when they do.