Dealing with commercial contracts in a business is a lengthy and costly process. If it involves suppliers and other key stakeholders, it can ruin the smooth operations of the company. Moreover, commercial disputes can lead to losses, particularly if they involve suppliers. Examples are; contact breaches and failure to meet expectations or conflicts between employees and the employer. Luckily, there are various ways to resolve the issues, and how you handle the situation determines the future of the business.
What causes commercial conflicts?
Every business wants to outshine its competitors, and conflicts arise often. Various issues can cause conflicts in a company; these include; premises liability, contract breaches, employment litigation, fraud, and many more.
In contract disputes, a party may fail to honor their obligations and stipulate in the agreement. Similarly, disputes arise among the employer and employees. Employment litigation may also involve business parties and city agencies.
Premises liability is also common. It involves injuries in the business premises whereby the company may be liable for the damages to the injured person. Fraud is yet another source of conflict in businesses. If a party is involved in actions that lead to financial losses, other partners can hire commercial solicitors to pursue the case in court. Other shareholder disputes can arise over finances. In this case, a legal advisor or solicitor can help resolve the dispute.
What are the standard commercial dispute resolution methods?
Mediation is a voluntary yet flexible way of resolving disputes. It involves a mediator or a neutral party who helps in coming up with a negotiated settlement. The mediator helps both parties explore their issues and settlement options to develop an amicable solution.
They may offer suggestions or advice and point out key issues that can help in solving the conflict. Moreover, the mediator may have sessions with each party separately, but the process takes than litigation.
Litigation is a process of resolving conflicts through the court system. It involves both parties who share their side of the story, and a judge makes the final decision. Litigation in commercial disputes involves various processes and may take time for the case to be resolved. Also, the dispute resolution process involves a solicitor who charges a certain amount for the services. The cost depends on the location, experience, and reputation of the attorney involved.
This is a private non-court procedure whereby an arbitrator is appointed by the parties involved to help resolve the dispute. The process is quite flexible and confidential. The arbitrator listens to both parties and comes up with a legally binding decision. Although you can appeal the final decision, there are minimal avenues for appeals like in litigation which takes into account multiple business laws. The process takes shorter than litigation, and the parties pay up the arbitration fee.
The bottom line
Most businesses opt for mediation to solve their disputes. This saves time and is cost-effective. However, there are issues where both parties can’t reach an agreement, hence need a legal professional to help out. This makes litigation the best way to resolve commercial disputes to meet the needs and interests of both parties.