Contracts are drafted for when things go wrong.
Typically, folks never look at their contracts until a problem arises. When they do, certain contractual disputes may be solved amicably. However, here are four types of contract disputes in which results are often better ensured with a lawyer's expert support:
1. Breach of Contract
Sometimes circumstances change, making it less convenient or even impossible for one party to uphold its end of the deal. Other times, disagreements arise because the terms of the agreement are unclear or ambiguous. In either case, once one party declares the other to be “in breach”, the gloves are off. Use your attorney to mount a robust defense and counterattack.
2. Non-compete Clauses
Non-compete clauses purport to limit the ways in which current employees may work with the competition or act against your interests…both now and in the future. Businesses often employ these clauses as a warning to terminated employees without knowing whether they would be enforceable. (Enforceability hinges on the clause's specific language, scope, governing law and jurisdiction, etc.) Use your attorney to understand whether your non-compete language is enforceable.
3. Partnership Disputes
You and your business partner(s) may not always agree when it comes to important organizational and business decisions. When there isn't clarity in your partnership agreement, disputes about roles, responsibilities and compensation can quickly escalate. Use your attorney to ensure that your perspective and posture are well-justified and supported.
4. Business to Business Disagreements
Agreements with counterparties should epitomize the old phrase, “trust but verify.” Often, however, business is done by invoice with minimal terms. In other cases, contracts are ambiguous or silent regarding a critical commercial component of the deal. Use your attorney to best position your arguments for maximum advantage.
Originally published 15 September 2020
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.
