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At some stage during your business journey, disputes are inevitable. Disputes can be extremely stressful for a business customer relying on good suppliers. In this article, we will explore three tips on what you can do to resolve a dispute with your supplier.
This guide outlines how to resolve commercial disputes.
Why Business Disputes Arise
Disputes occur for several reasons in business. For example, as a commercial customer, you may be unhappy because:
- your supplier has not delivered products or services on time;
- there are defects or problems with the products or services; or
- your supplier has misused your information or breached data protection laws.
We explore key tips for resolving your dispute.
1. Plan Your Strategy
Strategy planning is vital for dispute resolution. From the outset, you should consider how you want to address the issue. You should think about what you are looking to achieve and what time and resources you have.
Often, disputes arise when the supplier has breached the terms of a contract with their customer. Therefore, it is always important to have a written contract in place with your suppliers. A contract is critical when things go wrong in a supplier-customer relationship.
If the dispute is a breach of contract, you should review the contract and gather evidence of the breach. Likewise, check if your contract has a dispute resolution clause that outlines a specific procedure to follow. If so, you will need to comply with it.
If you do not have a written contract, consider whether you have any other documented evidence of what was agreed with the supplier. For example, do you have email correspondence about the services?
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2. Start With Constructive Discussions
You should always begin by discussing the issue with the other party. Politely raise the concerns with your supplier contact and try to work out a constructive way forward.
This step involves:
- informal discussions about the dispute and what you think has gone wrong; and
- clear communication about what outcome you want and how the problem can be resolved. For example, mention if you would like services delivered again because they were not performed to the standards agreed.
Informal discussions with your supplier can be the quickest and easiest way to resolve a dispute. There may have been misunderstandings from the supplier on your expectations, which they can overcome once you explain your concerns. Having constructive discussions can help resolve issues efficiently and allow you to find a positive way forward.
3. Consider Alternative Dispute Resolution Options
If your contract does not specify a particular method, there are various alternative dispute resolution methods, including:
- Negotiation – A process where you and the supplier negotiate to reach a resolution through compromise. This is more formal and structured than constructive discussions but similar in nature.
- Meditation – Process involving an independent, professional mediator helping you and the supplier reach a settlement on the dispute.
- Conciliation – Parties appoint a third-party conciliator to help resolve the dispute.
- Arbitration – A more formal process involving an independent arbitrator. Often, the decision made will be binding on the parties. This is a quicker and cheaper way to resolve a dispute, as opposed to going to court.
If all other options do not work, you might consider taking action in court. This involves bringing a legal claim to the courts, which a judge will hear. Ultimately, the judge will decide on how the dispute should be resolved.
If you are unsure about your options and prospects of success in court, seek legal advice at the outset. Usually, businesses involve lawyers in arbitration and court proceedings because these procedures are more complex. However, you can choose to take legal advice at any point during your dispute. Understanding your options and the merits of your case can help determine which route is best for you.
Key Takeaways
There are various options for resolving supplier disputes. You should consider your strategy and what you want to achieve from the outset. You should also review the terms of your supplier contract to check if any dispute resolution method is specified. Otherwise, you have various options to resolve the dispute, including informal discussions with your supplier, alternative dispute resolution methods, or court. Court action is usually the last resort, but you should seek legal advice on your options.
If you need help with a supplier dispute, our experienced disputes lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page.
Frequently Asked Questions
You can try to resolve the dispute informally through constructive discussions. If that does not work, there are various other alternative dispute resolution methods that you can use, like negotiation, mediation and arbitration. You can also bring a claim against the supplier in court, but that is usually the last resort.
This depends on how you want to resolve your dispute. Lawyers usually get involved with arbitration and court proceedings because these are complex routes. Otherwise, you can pursue informal routes, like negotiation, without legal assistance. However, you may want to seek legal advice on your options and the best way to resolve your dispute.
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