Understanding Contract Disputes and Their Resolution

Contracts are the basis for numerous business and personal relationships. Though agreements between partners, vendor contracts, and service contracts may resemble, they dissect the rights and duties of each party under the agreement. Still, even well-tailored contracts may give rise to a dispute. Knowing why contract disputes arise and how to resolve them is paramount to protecting your interests.

Common Causes of Contract Disputes

Usually, a disagreement arises from the parties not sharing the same interpretation of the terms of the contract. Some of the more ordinary causes include:

• Breach of contract: A term describing the failure of one side in a contract.
• Ambiguous terms: Due to ultra-vague or unclear manners of phrasing, contradicting expectations arise from competing interpretations of the terms.
• Non-performance: The procrastination or failure to deliver goods or render services.
• Fraud or misrepresentation: Whereby information known to be false lured the influence on the contract.

Methods of Resolving Contract Disputes

The conditions of the contract and the willingness of the parties to work together determine the way in which the dispute is to be resolved. Among the various options are:

• Negotiation: Direct talks are usually used to reach an agreeable solution for both sides. This is by far the most effective and least costly.
• Mediation: A third-party neutral intervenes to assist in negotiations, to find a mutually agreeable resolution without going to court.
• Arbitration: An adjudicator, under certain circumstances, will make a decision that may be binding or non-binding, depending on the arbitration.
• Litigation: Bringing the matter before a judge after all other means have been exhausted; it may be sometimes necessary, but it usually ends up being the most time-consuming and costly.

Preventing Disputes from Arising Down the Track

It is probably best to defend oneself when the contracts are clear and well-detailed. Specificity concerning the terms, the duties of the obligors, and the methods for resolving disputes should be embedded in the assessment so as to cut down on the possible occurrence of conflict.

Why Legal Assistance Is Important

Contract law can prove to be highly complex, and fairly insignificant disputes can really escalate fast. To have the best assurance that your rights will be upheld and that your attorney will be able to assist you in determining the best possible resolution of your situation, it is usually better to work with an experienced attorney.

This post was written by Trey Wright, an experienced bankruptcy lawyer Jacksonville FL! Trey is one of the founding partners of Bruner Wright, P.A. Attorneys at Law, specializing in bankruptcy law, estate planning, and business litigation.

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