Business disputes, also referred to as commercial disputes, involve laws referring to conflicts that could arise in a business or commercial environment. These business transactions are typically not criminal. According to the Small Business Association, over 627,000 new businesses are created each year and these businesses experience a multitude of legal issues in their inception and expansion.
Common Business Disputes
Corporations in the United States pay upwards of 20 billion dollars to attorneys each year to resolve business disputes. Some businesses operate in fear that a lengthy litigation process would harm their business. Arming yourself with the knowledge of common business disputes will help you to prevent your business from being susceptible to litigation.
Contract Breaches
Contract breaches include but are not limited to commercial business to business contracts, manufacturing agreements, employment agreements, non-disclosure agreements, information technology contracts, buy and sell agreements, and intellectual property rights agreements. A well-written contract will help businesses to evade contract disputes. There are four general types of contract breaches:
- Anticipatory contract breaches occur when a company announces, prior to the contractual deadline, that they won’t be able to hold up their end of the bargain.
- An actual contract breach happens as a result of an individual, company, or service refusing to fulfill their contractual obligations or when they perform their duties without completion.
- A minor breach takes place because a part of the contract was not fulfilled, but the item or service was delivered by the agreed-upon deadline.
- A material breach of contract transpires as a result of the item, that is delivered, not being what was contractually agreed upon.
Fraudulent Disputes
Fraudulent disputes arise due to deception in a claim or an omission of essential information. Fraud disputes involve misrepresentation, omissions, non-disclosure, fraudulent concealment, or fraud committed by a business partner.
Fraud can damage a business’s brand resulting in monetary damages, and legal penalties like disgorgement. Seeking counsel in the initial stages of a business could prevent damages from occurring because of a fraudulent business dispute. Click here for more information on how to protect your business from fraud.
Fiduciary Duty Breach
A breach of fiduciary duty comes about when an individual or business entity breaches his or her duty to others. The breach happens because the contracted individual or entity didn’t act in the interest of others. The fiduciary party owes its legal duty to the principal party.
Other common disputes include non-compete agreements being severed, intellectual property disputes, trade secret disputes, shareholder and partnership disagreements, insurance issues, and regulatory investigations. Working with a legal professional competent in the intricacies of business law could help prevent unforeseeable commercial conflicts.
Business Litigation Preparation
Preparing your business for litigation conflicts is essential for operating a successful business because legal issues will arise no matter what business sector that you are in. Comprehensively reviewing your organizational practices with an attorney may be one of the best choices you make to protect your business. Maintaining a concise paper trail can make it easier to gather data that supports your claim if you have to go to court.
In the event of a dispute, limiting communication with the opposition could prevent you from creating evidence or incriminating your business. A business attorney will help you avoid the admission of fault because doing so will be used against you in court. Seeking mediation before a conflict gets out of hand may save you and your business time, relationships, and money. If a dispute arises seek legal assistance from capable and adept business law professionals.
