Common Business Disputes
Written by AskTheLawyers.com™ on behalf of Montana Thompson with Phillips Law Group.
Some business disputes are more common than others; whenever business law is involved, it’s a good idea to consult with an experienced business lawyer to ensure that you and your business are protected. Small businesses and large corporations share many common disputes, in addition to certain issues that are unique to their size; regardless, certain types of business litigation can cause serious damage to a company without the proper help.
Common business disputes include the following:
- Breach of contract: Breach of contract disputes arise when one or more parties allegedly fails to uphold binding or bargained-for agreements. In most cases, business contracts are written, but in cases of verbal or implied contracts, it may be particularly difficult to dispute a potential breach of contract. Regardless, contracts can be difficult to both interpret and enforce without the help of an attorney.
- Construction disputes: Poor communication, murky agreements, and changes in material cost can all contribute to construction disputes between a business owner and contractor. Missed construction deadlines and unfinished projects are another cause for stress and anxiety in regard to construction contracts which a business law attorney can help negotiate, mediate, and even litigate if necessary.
- Unfair trade practices: Unfair trade practice disputes arise when one or more consumers feel that a business is conducting itself using deceptive, fraudulent, or harmful means. In these situations, a business may do more harm than good trying to defend itself and is better off seeking the help of an experienced lawyer.
- Commercial lease disputes: Just as with personal lease agreements, when a business leases a building or property to conduct their operations, and either the landlord or leaseholder feels that the other did not live up to their end of the bargain, constituting a breach of contract, a business law attorney may be able to sort out the situation with minimal damage to both parties.
- Shareholder disputes: This issue primarily applies to large corporations, and may arise for a variety of reasons. In some cases, shareholder disputes may arise when shareholders feel that a company has been dishonest with them about the direction of the business, how well the business is doing fiscally, or for other behavior they believe breaches the shareholder agreement contract, both explicit and implied. Shareholder disputes can be particularly damaging to a large corporation due to the number of parties often involved, so it is particularly important to avoid handling these disputes without an attorney by your side.
Whenever a business dispute constitutes some sort of breach of contract between the business and another corporation or individual, it’s important to remember that little actions can have a big impact on a company’s stability. Small businesses are particularly susceptible to the effects of even small-scale litigation, which is why business lawyers generally do not recommend handling legal disputes without first consulting an attorney. To learn more about common business disputes or for help with a dispute facing your business, reach out to a business law attorney.