Many contentious commercial disputes arise from a failure to ensure that terms of business within transaction-related contracts have not been properly reviewed in light of the nature of the business deal to be undertaken. One of the key issues is to make absolutely sure before embarking on a new business relationship that all aspects related to the services of products involved have been meticulously reviewed and the contract is fit for the purpose.
It is crucial that all potential hazards, arising from both internal and external sources, have been considered and the contract incorporates safeguards to protect the business and truly reflect the possible threats that may arise.
Frequently contracts, once initially drafted, remain in place and are rarely reviewed. Businesses are now operating in an unprecedented commercial climate and increasingly litigation arises. This is particularly relevant where cross-border business dealings are concerned. Your commercial contract is the armour that protects your business from risk and duplicity and it must be up-to-date, comprehensive and resilient to attack.
However, if you are new to or unfamiliar with the business practices and laws in the country you are doing business with this can easily lead to misunderstandings that can swiftly escalate to a contentious dispute. If at that juncture you discover that your contract does not include clauses that anticipated a cross-border issue your legal position may prove to be weak. The very first step is to ensure that you have watertight contracts that consider the unexpected and that you are advised by So many businesses did not truly consider their business interruption clauses in the commercial insurance, in fact, in many cases the insurance policies had not been reviewed for a considerable length of time.
Giambrone's corporate and commercial lawyers have extensive experience with European cross-border business disputes, with offices across Europe our lawyers cultural knowledge in EU jurisdictions considerably assists in negotiating out of court settlements in contentious disputes, as well as closing down disputes at an early stage. Businesses that will successfully navigate and withstand the difficulties and complexities that the current climate presents are those who prepare sufficiently thoroughly and protect every aspect of the business but are also agile enough to enable them to respond to unexpected eventualities thrown up whether they are expected or not. Organisations that have a wider commercial strategy and are able to recognise key risks and opportunities will be able to survive.
The very first step is to ensure that you have watertight contracts that consider the unexpected. If you are entering a trading landscape that you are not entirely familiar with you should undertake a thorough review of your commercial contracts together with a legal advisor fully conversant with the intricacies of the law involved.
A stark example of how such a failure to do so can be a disaster is the fact that so many businesses did not truly consider their business interruption clauses in their commercial insurance policies and believed that they were eligible to claim against such clauses in relation to the disruption caused by coronavirus pandemic without truly recognising that many policies require the nature of the cause of the business interruption to be specifically identified in many cases. The fact, often, the insurance policies had not been reviewed for a considerable length of time and the knowledge that opportunity was available to vary such clauses, makes the situation far feel worse.
Your business survival is only as good as your business strategies and your foresight to protect against risks.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.