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A commercial dispute occurs when you and another party disagree over business activity. For example, this can happen when you sell to your customers or request services from other businesses, such as your supplier. There are many commercial disputes, such as debt and commercial contract disputes. As most companies will have many contracts in place, it is likely at some point, you will experience a contractual dispute. These can cost you money and time. Therefore, it is essential to understand what your business needs to know about contractual disputes in order, for example, to avoid these. This article will explain what your business needs to know about contractual disputes.
What Does My Business Need to Know About Contractual Disputes?
A contractual dispute is a common type of commercial dispute your business may face. Below, we look at some critical points about contractual disputes.
What is a Contractual Dispute?
Naturally, a critical point for your business to know about contractual disputes is what these are. A contractual dispute is when you and another business or company have a contract between you for your business activities, and an issue arises.
This guide outlines how to resolve commercial disputes.
A contract is an agreement between parties and is only a legal contract where:
- there is an offer;
- the other party has given acceptance to this offer;
- there is consideration for the latter, such as payment; and
- the parties to the contract intend to agree that they have a legal relationship.
A contractual dispute could be one in which one of you does not comply with the contract terms as agreed. It could also be where you and the other party or parties to the contract disagree on the terms’ meaning.
How Do I Avoid a Contractual Dispute?
As a business owner, the last thing you want is a commercial dispute, including a contractual dispute. Therefore, your business needs to know how to avoid a contractual dispute.
Other ways to avoid a contractual dispute include, for example:
- documenting every decision leading to the contract formation in writing;
- making sure contract terms and conditions are clear; and
- taking care when making updates, including double-checking other terms and conditions.
How Do I Deal With a Contractual Dispute?
If you find yourself in a contractual dispute, knowing how to deal with it is crucial. Naturally, it is also essential to take legal advice from a solicitor specialising in dispute resolution. However, there are some specific actions to take when dealing with a contractual dispute. These are as follows:
- review the contract to, for example, identify the issue and find a way to resolve it;
- consider the evidence relating to a contractual dispute;
- think about alternative dispute resolution methods to commercial litigation, such as alternative dispute resolution (ADR).
What Should I Know About the Remedies for a Contractual Dispute?
When you are part of a contractual dispute and take action, you will want a remedy to the contextual dispute. Usually, contractual disputes will be resolved using an:
- equitable remedy; or
- legal remedy.
An equitable remedy is where parties to the contract find their resolution to the breach of contract by taking particular actions, including specific performance of the contract or cancellation and restitution. Damages are also a common legal remedy within commercial contract claims.
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Key Takeaways
When you run your business, you may fall into a commercial dispute, including a contractual dispute. A contractual update is where you and a party to a contract disagree on an element of it, such as the meaning of the terms and conditions. You want to know many things about contractual disputes as a business. These include how to avoid a contractual dispute, such as by documenting the lead-up to the contract in writing. Knowing how to deal with a contractual dispute is essential, which means reviewing the contract after taking legal advice. It is also necessary to know that you can get legal and equitable remedies when you take action for a commercial dispute.
If you need help understanding what your business needs to know about contractual disputes in the UK, LegalVision’s experienced disputes and litigation solicitors 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. So call us today on 0808 196 8584 or visit our membership page.
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