In the business world, disputes are an inevitable reality. Whether you have a start-up or a well-established corporation, understanding the most common disputes can help you be proactive in your business dealings and work to minimize the possibility of disputes or become skilled at solving problems when they arise.
Contract disputes
Disputes over breaches of contract are among the most common types of business disputes. They happen when one party to the contract believes that another party to the contract failed to fulfill their obligations as provided in the agreement.
For a contract to be enforceable in Tennessee, it must meet specific criteria, most importantly, mutual agreement and consideration. Common issues involving contracts include disputes over vague terms, breaches of contract or different interpretations of words.
Employment disputes
Problems can inevitably arise between employers and employees. Although it is ideal for them to solve these amicably, sometimes disagreements are more severe and result in lawsuits—for example, an employee alleging wrongful termination or sexual harassment.
Establishing clear policies, providing quality training and maintaining open communication can help keep these disputes from escalating and becoming legal problems.
Partnership disputes
It is common for partners to disagree in businesses structured as partnerships. Depending on their personalities and the issues, some of these can become legal problems. A well-drafted partnership agreement can often help prevent this.
Consumer disputes
Businesses of any size can face disputes with consumers, which are usually related to product quality, service, delivery of goods, or warranty.
These disputes can range from minor to significant, and it is essential to resolve them sooner rather than later, as they can damage a company’s reputation.
While disputes are common in the business world, how problems are handled often varies from one company to another. Understanding the common types of conflicts that may arise and what to do if you encounter an issue can help you be prepared.
In addition, it is critical to establish a relationship with a business attorney who can help you during these times. They can often keep problems at bay, or if a problem occurs, they can prevent it from becoming more significant.