Contractual disputes are a fact of life in the business world. Any workplace, including construction, sales, and product distribution is vulnerable to disagreements. Conflicts usually occur when one party breaches the terms of an agreement that both parties have previously signed.
When a contract is broken, it can have serious consequences. One’s reputation is on the line, and in the business world, people tend to avoid working with those who do not honor their commitments. Therefore, it is crucial that both you and your client carefully read and understand the terms of a contract before signing on the dotted line.
Common types of contractual disputes
Contracts can take different forms, and disputes may arise due to various reasons. Some of the most common forms of contractual disputes include:
- Exchanges of goods between suppliers and merchants. Disputes may arise when the goods purchased are delivered defective or not delivered at all. When products promised are not delivered, the purchaser may contest this type of contract.
- Commercial leasing agreements. When there is a disagreement over rental fees, the consumer typically receives an eviction notice.
- Non-disclosure agreements. These are designed to keep confidential or sensitive information out of the hands of the general public. However, when information is discovered to have been leaked after the contract has been signed, disputes may arise.
Finally, when a business offers a product warranty, consumer contracts come into effect. For example, if a customer purchases a television and it malfunctions, they can have it repaired or replaced as per the warranty’s conditions. However, conflicts arise when the business fails to comply with the warranty.
Whatever the reason for the dispute, there are times when the parties cannot resolve their differences through mutual agreement. In such cases, legal intervention may be necessary to settle the matter.