Contractual Disputes

Commercial & Contractual Dispute Services

Contracts are a part of everyday life, whether in business or as a private individual, sometimes parties to the contract fall out leading to Contractual disputes.

In business, typical contracts include

Avoid Contractual disputes – put it in writing

In order for a contract to be deemed to exist you need to have certain legal concepts present including an intention to create a legally binding relationship, an offer and acceptance of that offer and also crucial is that parties to the contract have legal capacity and for the subject matter of the contract to be legal. If these elements are present then there is no need for the contract to be in writing for it to be legally binding.
However, if there is no written contractual agreement and the agreement was verbal in nature, then there is the possibility that each party may have a different view on what has been agreed and this can lead to contractual disputes.

Since contracts are inevitable part of our lives so are the chances of disputes arising out of them. Some examples of common contractual disputes are

In a commercial contract a contractual dispute may arise in a franchise agreement, that’s why such agreements are in writing so that the obligations of the franchisee and franchisor are clearly set out to avoid any ambiguity and any commercial contract violations.

In a partnership, to avoid partnership disputes over profit share arrangements and obligations under the partnership, a written contract or partnership deed can clearly set out the contractual relationship.

As shareholder within a company, it is sometimes best to avoid shareholder disputes by having a clearly written document setting out entitlement to profits.

Property disputes can be avoided in situations where the rent is clearly set out in a lease/license or tenancy agreement.

In the absence of a written contract there is always scope for arguments to arise as to what exactly was agreed by the parties, to minimize this from happening though not mandatory it is always best to have the contract in writing to avoid contractual disputes.

Should the relationship breakdown between the contracting parties leading to a contractual dispute, consideration of Alternative dispute resolution (ADR) should always be considered as an option in order to resolve the matter on a cost efficient basis. Shouldalternative dispute resolution fail there is always the option to pursue litigation in order to resolve the contractual dispute.

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