Table of Contents
It is inevitable that, at some stage, a customer will complain regarding a contract you have entered into. As a supplier of services, you must act quickly and proactively to resolve customer disputes. Otherwise, complaints could turn into expensive and time-consuming legal disputes. This article will explore what you should do if a business customer complains about a contract.
Why Might Customers Complain Under a Contract?
A customer might complain about a service provider for several reasons.
For example, if you enter into a legal contract for services with a customer, they could:
- complain that your company has failed to deliver the services to their satisfaction;
- state that you have failed to deliver the services on time; or
- allege that you have misused their company information or data.
Treating customer complaints seriously is essential, particularly when you have entered into a contract with a customer. A relatively minor complaint may be a breach of your contract, which entitles the customer to various legal remedies.
What Should You Do if a Customer Complains About a Contract?
Here are some key steps to take if a customer complains regarding a contract you have entered into.
1. Resolve The Complaint Immediately
It is imperative you avoid any delay in handling a complaint. Instead, ensure you take a fast and proactive approach. It may be tempting to ignore an issue and hope it will disappear, but this is not helpful.
You should approach the issue straightaway and work to manage it to arrange a resolution. Otherwise, a complaint that you might initially be able to resolve quickly may escalate into a dispute. For example, a customer may feel you are not taking their complaint seriously and seek to escalate it.
Acting fast can also help demonstrate good customer service. For example, showing your customer you are happy to address their concerns may indicate you are a trustworthy business and help maintain your working commercial relationship.
Ensure you also keep records of all written communication with the customer. You may need it for evidence if a dispute arises in the future.
2. Check What Your Contract Says and Consider Your Options
Assuming the customer complaint is regarding a potential breach of your obligations, you should review your contract immediately.
Subject to any dispute resolution process set out in your contract, which you are bound to follow, there are various options you could consider to resolve the complaint.
For example, consider constructive discussions with your customer to find a way forward. This could involve meeting the customer, taking the time to understand what has gone wrong and offering remedies. Possible remedies include delivering the services again or issuing a partial refund.
Furthermore, alternative dispute resolution options may also be an option for more serious complaints. Alternative dispute resolution methods encourage a party to try to resolve disputes informally without bringing a claim to court. For example, you could pursue negotiation or mediation, whereby you attempt to resolve the problems informally with the customer.
When considering the route to go down to resolve a complaint, you should consider factors including:
- the complexity or severity of the complaint;
- whether you agree with the customer’s complaint and your business is at fault;
- what outcome you want to achieve with the customer; and
- the time and money you can invest in resolving the problem.
3. Consider Legal Advice
You should consider taking legal advice if you need clarification about your options and what to do with a customer complaint.
Customer complaints and allegations can become particularly convoluted. Such problems require careful thought and strategy planning.
In particular, as a supplier, you must understand whether you have breached your contractual obligations. If so, you will also need to understand the seriousness of the breach and what remedies the customer could be entitled to. For example, whether the customer could be entitled to terminate your contract or pursue a damages claim against you.
Due to the complexity of breach of contract claims, you should always take legal advice if you believe you may have breached your contract with a customer.
Working with an experienced dispute resolution solicitor can help you quickly determine the most effective way to resolve the complaint. Likewise, a solicitor can help advise and represent you should the complaint escalate into a dispute. Therefore, engaging legal support can afford you significant legal protection.
A dispute resolution lawyer can help you with matters such as:
- identifying the seriousness of the complaint;
- considering whether the complaint is a breach of contract;
- exploring how to resolve the contractual complaint;
- advising you on the legal issues and any remedies the customer has – for example, whether their complaint has merits and could warrant a claim against you in court.
This guide outlines how to resolve commercial disputes.
Call 0808 196 8584 for urgent assistance.
Otherwise, complete this form and we will contact you within one business day.
Key Takeaways
Customer complaints can be very stressful and damaging for your business. However, you must take proactive steps to help resolve complaints before they escalate. You should check your contract with the customer to determine whether you and the customer need to follow a specific dispute resolution procedure. You should also consider resolving the dispute through alternative dispute resolution methods. Ensure you seek legal advice if you need clarification on resolving the customer complaint, as a dispute resolution solicitor can support you in various ways.
If you need help with a customer complaint or 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.
We appreciate your feedback – your submission has been successfully received.
