Common Contract Disputes in Business Law
Written by AskTheLawyers.com™
Written by AskTheLawyers.com™
One of the most significant areas of business law involves contract disputes. Contracts are designed to hold two or more parties legally responsible for whatever terms are contained therein. However, when pieces of a contract are unclear, it may be necessary to involve lawyers to help interpret the legal implications of the language therein, and to renegotiate if necessary. It may also be necessary to involve an attorney when a breach of contract occurs.
There are a variety of common contract disputes which occur in business law, including but not necessarily limited to the following:
- Contract drafting and review: The first stage of contract law occurs when a contract is initially drafted. Depending on the agreement being made in the contract, it may be wise to involve an experienced legal professional, at least for help in the review process. Once a contract is offered and accepted, it can be difficult to make changes so it’s important to make sure a contract contains thorough direction regarding all parties' concerns before being signed.
- Offer and acceptance: This type of contract disputes is relatively straightforward. This occurs after a contract has been drafted and undergone expert review. It is at this point that the contract is offered from one party to another, in hopes that the terms therein will be accepted and the contract go into effect. If one or more of the parties has concerns regarding the contract, it may be necessary to renegotiate, offer again, and hope acceptance occurs.
- The definition of terms: It may be necessary to involve an attorney to define terms of a contract when confusion arises. What might at first seem like a breach of contract could occur when one party misinterprets one or more sections of the contract. If there is any confusion regarding terms of a contract, it is helpful to sit down with a business attorney and discuss how the terms should be reasonably defined.
- Errors in contract: If an error is discovered in the contract after all parties have accepted, it may be necessary to hire an attorney to redraft the contract, correcting the error, and then begin the process of offer, acceptance, and negotiation again.
- Coercion or fraud: If coercion or fraud occurs regarding one or multiple parties in a contract, it is important to contact an attorney as soon as possible. The consequences for these actions can be severe for everyone involved, and it is important to ensure that every protection possible is detailed and enforced from the contract itself.
- Breach of contract: There are four kinds of contract breaches, each of which may require a different level of correction and compensation for the breach. The four types of contract breaches include minor breaches, material breaches, fundamental breaches, and anticipatory breaches.
For help handling a contract dispute or to file a lawsuit for a breach of contract, reach out to an experienced business attorney. Damages which may be compensable in a contract dispute can vary widely depending on the terms detailed in the contract itself. This is why it is important to involve an expert in every step of the process, making sure that each party's concerns and desires are fully addressed in clear and certain terms.