Common Types of Business Disputes
There are many types of business disputes that arise in the course of running a business. Some of these include contractual disputes, tort claims, and property disputes. You might have to consult a Law Firm to solve these disputes. There are ways you can settle these conflicts before it escalates into a lawsuit.
Business disputes can affect the reputation of your business, cost you money, and cause you to take legal action. Most of the time, disputes can be prevented by simple communication and mediation. Since there are several types of business disputes, it would be beneficial for you to understand their basis, causes, and resolution so that you can prevent them from growing into a major issue in your company.
We will now look into the most common types of business disputes.
Breach of contract
Contracts are fundamental to an organization. The contract usually states the main objectives of the parties involved and defines what each party is going to do. It is most important that you define clearly what you intend to get out of the agreement. Failure to make a clear contract causes problems for both parties during execution as it leaves room for misunderstanding and conflicting expectations which might lead to a breach of contract claims by either party.
A partnership is a two- or more-party agreement where one of the parties (called partner) is a guarantor, and the other is not. Partners can be individuals or organizations. One thing that a partnership must-have is the written agreement to form it. For this reason, there must be an agreement on what will be done and what fees are being charged to the business partners.
Any disputes that involve employees and employers are categorized as employment disputes. At times, employees may feel that their bosses are unfair or even abusive. They can file a complaint against their employers and expect the company to do something about it. This type of dispute is common among business owners who don’t treat their employees fairly, pay them less than the minimum wage, or make them work overtime without paying for it.
A shareholder is an individual or an entity who owns shares in a company. A shareholder may need to interact with the firm’s board of directors with respect to the day-to-day operations of the business. Both shareholders and directors are bound by the corporate law of their country. When a dispute arises between them, they must understand their rights and responsibilities.