Contractual disputes arise when one or more parties bound by a contract disagree with some of its conditions or have breached them. Contractual disputes are very common in the business world, but if they’re not dealt with properly, they can impact a company’s reputation, operations, and relationship with other businesses.

Contractual disputes can easily be avoided or resolved. Let’s look at how you can do both in this blog.

Avoiding Contractual Disputes

Contractual disputes can be avoided with ease if you keep some of these tips in mind:

Read the Contract Properly

Reading the contract thoroughly is seemingly the most obvious thing. Yet, not doing so is one of the mistakes many businesses make. Many business owners don’t read the contracts themselves and take the other party's word to save time and hassle.

Reading the contract can help you know your rights and contractual obligations. Moreover, it may also not bind you to agree to something you may not have if you knew it in the first place.

Negotiate

If you find something in the contract you don’t agree with, make sure to negotiate it instead of just agreeing to it at that time and dealing with it later. Negotiating the terms is important so you can comply with them in the future.

Check the Length of the Contract

Always make sure how long is the length of the contract. Knowing the length of your contractual obligation is key to avoiding disputes in the future. For example, some contracts may seem short-term but have certain clauses that can automatically extend them. This is one of the most common reasons for contractual disputes because companies only find out about a contract’s binding after they have breached it, thinking it had ended.

Read the Termination Clause

If your contract has a termination clause, ensure you understand it and know for how long it is valid. If you want a termination clause in the contract, make sure you negotiate for it before signing anything.

Termination clauses often have consequences. If you don’t fully understand or know those consequences, it can greatly affect your business.

Resolving Contractual Disputes

Resolving contractual disputes is much different compared to avoiding them. This is because, at this point, you or any other party is bound by the terms of a contract they don’t agree with or have breached. There are different ways of resolving contract disputes; let’s look at them here.

Solving the Dispute Amicably

A lot of times, contractual disputes arise because of misunderstandings or mistakes. In cases like this, all the parties involved in the dispute can mutually agree to resolve the contract without further delays or any legal proceedings required.

The party that has breached the contract may need to compensate the other parties involved in the contractual agreement and settle the matter.

Legal Letter

If the parties involved in a contract don’t come to a settlement on their own, sending a formal, legal letter to the party that breached the contract can be the next step. This process involves sending a legal notice reminding the party of the contractual terms and how they have breached or are not agreeing to despite them having signed the contract.

The purpose of this letter is to let the other party know your intention to take the matter seriously.

Litigation

If no settlement can be reached, the last step is to file a litigation lawsuit against the party that breached the contract. You will then prepare your case and back your claim with evidence regarding the breach of contract by the accused party.

All of these things, starting from proofreading and negotiation of the contract to filing a litigation lawsuit, need to be done with the help of a business lawyer. This is because they can help you ensure you don’t miss even the smallest of details every step of the way. If you’re searching for a business lawyer to handle your litigation case in Canada, Nanda & Associate Lawyers can help you.

They have a team of experienced business lawyers who can help you resolve your contractual disputes amicably or through court. Moreover, they also have immigration lawyers, wills and estate lawyers, civil litigation lawyers, and more. They offer their services in Toronto, Brampton, and Edmonton.

Book a meeting with them today.

 About the Author

Amanda Anthony is a business lawyer who has been practicing law for over one and a half decades. She has been associated with Nanda & Associate Lawyers for several years and has helped multiple businesses resolve their contractual disputes through settlement or litigation lawsuits in court.

Disclaimer: This article is only intended for educational purposes and shouldn’t be used as a substitute for legal advice.