People sometimes say that contracts are the lifeblood of a business. The terms included in a contract can protect a company’s trade secrets and control operational expenses. Businesses that have established contracts with service providers, employees and other companies typically expect the other party to an agreement to uphold the contract.
Most of the time, businesses and professionals that sign binding agreements do their best to uphold the agreement and fulfill contractual obligations. Occasionally, there may be conflicts related to a contract. One party may fail to fulfill their obligations or may attempt to renegotiate terms that they already established.
Dealing with contract-related conflicts can be a frustrating process for business owners and executives. What steps may help secure a positive outcome to a contract dispute?
Reviewing the contract
The first step toward the resolution of a contract dispute involves reviewing and validating the contract. The party concerned about the status of the contract may need to review the agreement thoroughly to verify their perspective on the matter and affirm that the contract is a valid and enforceable business agreement. After reviewing the contract, they can then begin preparing to enforce the contract.
Sending notice of the breach
Sometimes, it is possible to resolve a contract dispute quickly and amicably through direct communication. If the party in breach of the contract does not take immediate steps to resolve the issue, then the other party affected by the contract issue can provide formal written notice advising of their intent to take additional action. A warning letter can affirm the breach that occurred and advise of the requested remedy. Proper notice gives the other party a final opportunity to address the situation before any legal action occurs.
Initiating civil litigation
If a written warning does not prompt the other party to remedy the situation, then following through with legal action is typically necessary. The party frustrated by the contract violation can ask the courts for a specific solution. In some cases, pending litigation may result in the other party resolving the matter or proposing alternative dispute resolution. If they do not respond appropriately, then a judge can review the contract dispute and determine the best solution.
Those facing challenging business law issues, including contract conflicts, may need help resolving the issues they face. The right support can make it much easier to navigate commercial contract litigation.