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What are common business disputes?

On Behalf of | Jun 23, 2020 | Business Litigation

Not everyone gets along all the time in the business world. When discord arises within or between companies, it may result in a court appearance.

Regardless of your experience in the business world, it never hurts to review some common disputes that may occur. Having a basic understanding of what to look for may help you prevent some of these quarrels from breaking out in your company.

Breach of contract

You make agreements in the business through the use of contracts. These are legally binding documents that allow for a slighted party to recover losses should the other party not stick to the accords. A breach of contract is one of the most common disputes. A break in the terms of an agreement may result in remedies. These are not abstract. The contract itself contains the penalties. The most common solution is financial compensation for losses suffered as a result of the breach.

Employment issues

Poor employee relations may lead to falling outs within your office. Sometimes these may end in a lawsuit against the company. There are some instances where the terms of an employee’s contract do not appear fair or just. Business disputes involving things like non-compete clauses may find employees and managers settling their differences in court.

Partnership problems

A change in leadership at the top may make circumstances ripe for disagreements in your company. Even absent this, business partners may start to fall out of favor due to a difference in ideas and direction. When this type of dispute arises, a person may wind up leaving the company. However, this type of exit usually comes with a legal buyout or remedy set out in the partnership agreement.

Handling business disputes may fall under the Californa Dispute Resolutions Act. Whatever helps your business overcome these bumps is the route worth taking.