Disputes can occur between businesses for a number of reasons, but they often arise as the result of a breach of contract or the failure to pay for goods or services received. There are different ways to deal with a commercial dispute, including informal negotiation, mediation and commercial litigation.
How to deal with a commercial dispute
There are 5 keys points to consider to ensure a resolution is reached with the minimal amount of effort and money. Each point is necessary and links to the next.
- Communication – between the parties to understand the dispute / breach. Communication will allow you to gather all the relevant information in order to move forward towards a resolution.
- Understanding – is gained from early communication and identifying the reasons why the dispute / breach has arisen.
- Strategy – agree or suggest a viable strategy to resolve a dispute / breach, such as amended payment terms.
- Implementation – of the strategy. To ensure this is carried out as agreed this will require commitment by both parties.
- Resolution – a resolution should be reached after the implementation of the agreed strategy. If not, further action which will likely involve the Courts will be required.
What is commercial litigation?
Commercial litigation is formal legal action taken through the Court to resolve a dispute between businesses. It is not in the interest of any party to involve the courts for a dispute unless absolutely necessary. However, even with the best communication, total understanding and clear strategy a resolution may not be reached and litigation is sometimes necessary.
We always recommend that businesses seek legal advice on how to deal with a commercial dispute as early as possible, ideally as soon as the dispute arises. Early legal advice means it is more likely that a resolution will be reached more quickly and more cost effectively.
Contact us to discuss how our business team can help with avoiding and resolving commercial disputes. You can submit an enquiry using the form below, call us on 01392 256854 or email firstname.lastname@example.org.