A Guide To Avoiding Common Disputes In Commercial Litigation

A commercial or contract dispute can be a major source of anxiety and frustration. If faced with a dispute with a supplier, customer, or another business, you may feel that you are on your own with no one to help you to negotiate a satisfactory outcome. The toll can be immense, both on your business and your personal health and well-being.

Commercial dispute resolution solicitors are experts in managing a variety of disputes, from contract breaches and negligence allegations to unpaid debts and Intellectual Property claims. In this article, we will outline the most common commercial disputes and the steps you can take to achieve a prompt and reassuring resolution.

Breach Of Contract

Contracts are a routine part of business life and are there to ensure that all parties provide the agreed services or products. When one party fails to fulfil their obligations, the other can lose out financially, and the damage to their reputation can be serious. If a breach of contract occurs, both parties should review the contract terms and aim to agree on a resolution that satisfies everyone. Litigation should be a last resort if negotiation fails.

Intellectual Property

Intellectual Property (IP) disputes occur when one party uses another’s property without permission, such as symbols, logos, names, images, written works (including digital content), or inventions. An example would be a company knowingly using a name that has been trademarked by another business or reproducing copyrighted material, such as text from a downloadable guide or printed book. To resolve the dispute, it is important to seek legal advice as different actions may be appropriate, for example, to require the other party to pay a fee to use the IP or to stop using it with immediate effect.

Employment Disputes

Employment disputes may arise when a present or former employee believes that their contractual or statutory rights have been violated – for example, they have been denied breaks, benefits, accommodations due to disability, or personal protective equipment – or they have been wrongfully dismissed from their role. A detailed internal investigation should be held which carefully examines the employee’s employment contract to ascertain if their claim is legitimate. If so, a settlement can be negotiated. If an employer is unwilling to engage or refuses the claim, the employee can commence litigation.

Fraud And Misrepresentation

Fraud disputes arise when one party in a contractual relationship misrepresents facts to gain an unfair advantage, for example, the willful misdescription of goods to inflate their price. To resolve this problem, gather as much evidence as possible and try to negotiate an agreement with the other party. If this fails, however, it may be necessary to resort to litigation, to seek the professional advice of a commercial dispute resolution solicitor.

Debt Collection

According to research by Barclays, well over one-half of UK small and middle-sized enterprises (SMEs) are owed money by customers, a problem that destabilises cash flow, makes it harder to invest in growth strategies, and can even threaten a business’s existence. When invoices remain unpaid, debt collection may be the only solution.

Try to negotiate a payment plan or settlement but, if this fails, you may have to consider litigation. To reduce the likelihood of non-payment, ensure that your payment terms are clear and offer incentives to customers for prompt payment, such as preferential terms in future.

Contact Astle Paterson For Dispute Resolution Advice

At Astle Paterson, our experienced professionals provide expert dispute resolution advice to help our clients to achieve a satisfactory resolution to common business disputes. To discuss your situation with one of our advisors, please call us on 01283 531366 or send us a message.

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