Contracts are agreements that bind two parties together for a certain period of time. A contract can only be binding when both parties are in agreement about the terms and conditions of the contract.
Disputes between two contracting parties can occur for a number of reasons, but the most common reason is when one party violates their contract. Fortunately, most contracts include dispute resolution clauses that encourage the parties to resolve their dispute without going to court.
When a dispute arises, the first step is to consult with an attorney about the options that are available to you. He or she will help you to understand the contract and what legal action you should take. They may also recommend that you try to negotiate outside of the courtroom with the other party, which can be more effective in resolving the dispute.
It is always best to start the negotiation process by documenting all of your conversations in writing, including offer history, quantities and prices, and any other terms and conditions you have agreed on. This will help to ensure that any future disputes are not based on any forgotten contract details and can help you avoid unnecessary costs and problems down the road.
Consider Adding a Discretionary Clause to Your Contract
Many contracts include a discretionary clause that enables the parties to agree on an alternative form of dispute resolution, such as mediation or arbitration. These types of agreements can save both sides time and money, and they are a great way to prevent litigation in the future.
Make a Written Warranty
A warranty is an agreement that a company makes with their customers that they will provide a specific product free of defects or hazard for a set amount of time. In exchange for cash, companies agree to guarantee a product and will refund the customer’s money if the product fails to meet its promise.
Ensure that the warranty terms and conditions are clearly defined. They should contain definitions of terms used in the industry as well as legal words and jargon.
Be sure to regularly update your contract with new product specifications and be certain that all parties are aware of the specifics and expectations of the agreement before you finalize it.
Maintaining a Positive Approach to Negotiation
In order to avoid contract disputes, businesses should be open and honest with each other throughout the negotiation process. They should be clear on their goals and what they expect of each other and avoid making concessions or accepting blame (whether in written or oral form).
Use a Written Contract
When it comes to contracting, you need to be sure that all of the details are recorded in writing. Often, businesses will forget to record certain aspects of the negotiations that could lead to later disputes.
Invest in Professional Dispute Management
If you are a business owner, it is vital to have a legal professional assist you with your contract disputes. By hiring an experienced attorney, you can ensure that the legal process is handled correctly and properly.