How can businesses resolve disputes?

| Apr 12, 2021 | Business Law |

Disputes commonly arise between contracting businesses in Florida. These disputes might occur when the contracting parties might have differences of opinion or misunderstand their respective contractual obligations. Because of the potential for business disputes, it is important to address how conflicts will be handled within the business contract. Disputes might be handled through traditional business litigation, negotiation, or alternative dispute resolution methods.

Contract provisions

Businesses should include provisions in their contracts that address how the parties will handle any business disputes that might arise. The parties should agree to the methods of resolving disputes as detailed in the contracts. The language used in the contract should be clear so that everyone understands their obligations and what they should do when a dispute arises.

Traditional and alternative dispute resolution methods

The traditional way that contracting parties handle disputes is through business litigation. This is a formal process that is handled in court. The parties can include litigation in the contract as a method of resolving conflict. However, litigating disputes through the court process can be time-consuming and costly. Companies might also include alternative dispute resolution procedures in their contracts to provide a mechanism for resolving contract disputes outside of the formal court process. These can include mediation and arbitration, which might be faster and less costly than formal litigation.

Some contract disputes can be resolved through negotiations and other informal processes so that the parties can continue under their contracts. However, major contract breaches that prevent the parties from performing under the contracts might have to be resolved through business litigation to recoup the money that was lost. An experienced business litigation attorney might try to negotiate on behalf of a client to try to resolve disputes. However, if the breaching party’s contract violations are so major that they prevent the parties from continuing under the contract, the attorney may file a formal lawsuit in court and litigate the matter on the client’s behalf through a jury or bench trial.

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