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Steps to take before litigation for contract/business disputes

On Behalf of | Jun 24, 2019 | Firm News

When it comes to contract disputes and resolutions in California, many entrepreneurs are not aware that there are measures they can take to resolve them outside the courtroom. Though going to court is often best reserved as the last tactic, sometimes, taking things to litigation is necessary. Attempting to resolve business issues outside the courtroom can help preserve business relationships and help clear up potential misunderstandings. Not all business disputes/breaches of contract are the result of ill intent. 

Business must go on, and breaches can cause delays that interfere with an organization’s operations and profits. The same applies to a lengthy contract dispute and breach litigation. Before filing a motion with the courts on potential issues you encounter with your vendors or workers, consider the following less severe resolution tactics. 

Check the contract for dispute resolution steps 

Contracts outline the terms and expectations existing between contracted parties. A valid and enforceable contract should also include a clause that outlines what measures either party can take in the event of contract breaches

Contact the violating party 

Address the issue immediately. Directly contact the violating party to meet and discuss the issues preventing the terms and expectations of the business arrangement from working. Work to resolve misunderstandings. If necessary, revisit and review the contract together to ensure everyone is on the same page. 

Be flexible 

Resolutions are not always black and white. Sometimes, misunderstandings and breaches are resolvable when one party become less rigid and more flexible. Keep your goal in mind, but consider alternative strategies outside the obvious measures that can help put an end to current disputes and prevent future ones. 

Consider mediation or arbitration 

Before heading to a judge, try arbitration or mediation. Sometimes, it takes the involvement of a neutral third party to offer practical solutions that prove beneficial to all parties. Mediation and arbitration require a collaborative effort from all parties. 

Litigation may seem like a straightforward way to manage all contract and business violations, but it is not as cost-effective as working things out without court involvement. No matter the nature of conflict and dispute matters that arise, always choose the resolution method that allows you to protect the best interest of your business.