Common contract disputes

On Behalf of | Feb 7, 2020 | Business Law |

Businesses large and small rely on contracts for a variety of things. From employment to materials, without valid and legally binding agreements, companies may find themselves in difficult situations.

It helps to understand some of the most common disputes that may arise after a contract goes into effect. Our legal team strives to provide all business owners with basic information on how to identify a material breach. Explore some of the instances when a contract dispute may occur.

A material breach of contract

A contract sets forth the terms by which the parties involved plan to go about transacting business. When a material breach happens, it renders the entire agreement void, and both parties released from further performance under the terms of the contract. The party responsible for the violation may face legal consequences.

Common contract disputes

Even the simplest of errors in the drafting and execution of a contract may result in a breach. Many issues in this stage of a contract occur because one side or the other did not adequately review the conditions and terms of the agreement, including things like the timing, party names and payments contemplated under the contract. Another critical piece of a contract is the proper definition of all terms. If a term’s meaning is too broad, the parties may find themselves interpreting an agreement in opposing ways. This may result in lost time, money and end in a material breach of the contract. Allegations of coercion or inducement of one party to sign an agreement may also result in a dispute.

The costs associated with a contract dispute are high. There are things a business entity can do to help ensure that an agreement is enforceable as it stands. Follow this link to our website for more insight on this and other issues.