Consult experienced counsel early in a contract dispute

In California and elsewhere, two business entities often find themselves in an agreed joint venture, a partnership or even a series of repeating business transactions that the companies find to be profitable. Generally, at the core of the relationship is a written contract or a series of writings constituting a legal contract. While the profitable transactions may continue for extended periods, there often comes a time where a twist or turn of events causes a problem for both businesses, leading to a contract dispute.

They turn to the contract and cannot find a resolution. What started out as a good working relationship, profitable to the business and perhaps even responsible for keeping several workers busy and employed, has now gotten mired in the quicksand of confusion and conflict. The best and most efficient way out of this wrong turn is to consult with an attorney experienced in handling contract disputes between businesses.

One of the problems that may arise is that the language in a contract may not always rise to encompass every factual transaction or deviation from the norm. In addition, business practices, innovative technology, new inventions and a myriad of other unavoidable changes may make the contract partly obsolete. If the company did not have a business attorney contributing to contract formations in prior years, the language may prove too loose and imprecise to pin down a resolution to the dispute that comes up.

If the contract dispute must be submitted to mediation or arbitration per the terms of the agreement, then that procedure in most instances must be followed under California law. Regardless of such provisions, however, a business should always follow a policy of negotiations and discussion prior to escalating an unexpected conflict. When a contract dispute first arises, that is often the best time to have the company’s business litigation attorney get involved. A seasoned and wise business counsel will generally be effective in steering the company into a fair resolution and away from costly and distracting court litigation.

Source: augustafreepress.com, “What you need to know about business dispute lawyers“, Nov. 22, 2016

Tags: Business Litigation

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