Common Business Contract Disputes — and How to Avoid Them

When you own a business, you enter into contracts that affect virtually every part of your business. Sometimes, carrying out the terms of a contract gives rise to a disagreement or dispute that needs to be resolved by the parties. By being aware of common business disputes — and knowing how to avoid and resolve them — you can save the time, energy, and costs of resolving an issue that has escalated into a significant business contract dispute.

Commercial Lease Disputes

Many business owners enter into one or more commercial leases for real estate used in their business operations. A commercial lease is an extremely complex legal document that defines the legal rights and obligations of both the lessee and the lessor in great detail. Disagreement over lease obligations is a common type of business contract dispute. In some cases, a lease dispute can have substantial financial implications for both parties.

While it may not be possible to avoid a lease dispute in some situations, fully understanding the terms of a lease before signing and negotiating acceptable terms in advance can avoid many potential issues in the future. If you are a business owner, you should never sign a commercial lease without having a business law attorney review the lease with you. Your attorney makes certain that you completely understand all the terms in the lease and know the full extent of your obligations and rights. If there are problematic provisions, your lawyer can help you negotiate more acceptable terms with the lessor before you sign the lease.

If an issue arises after you signed the lease, you should talk with an experienced business law attorney to determine how the provisions in the lease affect your rights regarding the issue in dispute. In some cases, your attorney can help you find a way to resolve the dispute with the lessor before it escalates into a more significant legal problem.

Consumer Service and Product Disputes

If your business provides a service or product to consumers, you likely will encounter instances when a consumer is not satisfied with the quality of the product or service you provided to them or claims they received an injury or other harm from your product or service. Your obligations and rights in a consumer dispute are governed by your contract with the customer and federal and state laws.

As a business owner, you have specific legal obligations to consumers, which must be fulfilled in providing services and products. When a consumer dispute arises, you should attempt to resolve the problem by providing high quality customer service that addresses the consumer’s concerns. If you are unable to implement a solution that satisfies the consumer, you may need to talk with a business law attorney about what steps you should take to protect your business, depending on the nature of the dispute.

When you start a business, understanding your legal obligations to consumers in advance is extremely important. A business law attorney who helps you establish your company can discuss those issues with you and make certain you are aware of your legal responsibilities to consumers. If you use forms and contracts with consumers in your business, your attorney should review those documents in advance to ensure that they provide you with as much legal protection as possible.

Vendor and Supplier Contract Disagreements

Often, a business owner relies on other businesses to provide products and supplies that are a crucial part of their operations or end product. A business contract underlies the obligations and rights of every vendor or supplier, even if the business contract is established through digital or verbal communications.

Often, established vendors and suppliers use form contracts with terms favorable to them to provide products and services. A business owner should not sign or a form contract without fully understanding what rights and obligations they assume under the terms of the contract. Having a business law attorney review vendor and supplier contracts before signing is the best protection against an unanticipated issue or dispute with a vendor or supplier. If necessary, your attorney can help you negotiate more advantageous terms before you sign.

If a dispute arises with a vendor or supplier, the terms of the contract determine the business owner’s options for resolving the dispute. If an issue cannot be resolved satisfactorily through discussions with the vendor or supplier, getting help from a business law attorney may be advisable, depending on the situation.

Other Business Contract Disputes

A business owner may encounter other types of business contract disputes, based on the nature of the business and the types of contracts required to carry out the work of the business. Regardless of the nature of a business contract, getting help from a business law attorney in reviewing contracts before execution and in reviewing forms and contracts routinely used in a business is an important step to take in advance to business disputes. When a disagreement arises, it is often preferable to ask for guidance from an attorney early on, rather than waiting until the dispute escalates to a point that it becomes more difficult to resolve.

Schedule a Free Consultation With an East Valley Business Law Attorney

In our business law practice at Peterson Law Offices, we understand that small businesses, whether new or established, often do not need a full-time lawyer but do need reliable, responsive legal counsel throughout the life cycle of the business. Our goal is to help your business succeed, grow, and thrive, while minimizing legal problems you encounter and finding the best solutions for the issues that do arise.

Our services include making certain that you protect your rights in all contracts relating to your business. We offer contract review for new agreements, as well as for standard forms and contracts you use in your business operations. We always provide high-quality legal services at affordable prices — and your first consultation is free of charge.

We welcome inquiries from clients throughout the East Valley, including Queen Creek, San Tan Valley, Gilbert, Mesa, and Chandler. Schedule your free initial consultation by calling 480-878-5998 or using our online contact form.