Potential Outcomes of Contract Negotiations and Disputes

One of the more common reasons why businesses engage the services of a commercial litigation lawyer involves contract disputes. A dispute may have developed with a contract between your business and a contract worker, an employee, a vendor, a client or someone else. Contracts are signed to protect the interests of both parties and to ensure specific action, such as services, payments or something else. When contract terms are violated, significant stress, financial loss and other issues may be realized. These are some potential outcomes that your commercial litigation lawyer may work toward on behalf of your business.

1. A Contract Revision

When both parties are unhappy with the terms of a standing contract, they may agree to revise the contract. This often requires heavy negotiations between the legal teams on both sides. However, the end result may be an amicable solution that works well for all involved.

2. Financial Compensation

Some contracts are written with terms or clauses that require the party who is in default to pay the other party a fee for inaction. Some parties will pay any penalties or other fees without concern, but many require the threat of legal action before they are willing to pay a fee per the contract’s terms. In some cases, there is a dispute about whether a party acted outside of the terms of the contract. Negotiations may be necessary in this type of situation, or a lawyer need to send a notice to the other party disclosing pending legal action.

3. Termination of the Contract

There are instances when an existing contract is no longer beneficial for either party. Some contracts are written with termination clauses, and your attorney may help you to act on this clause. In other causes, lawyers must negotiate to create an agreement on both sides to terminate an existing contract.

4. Courtroom Action

While many contract disputes can be properly addressed in these various ways, be aware that there are instances when the matter will escalate. A commercial litigation lawyer generally has substantial experience litigating matters in a courtroom. Because it may not be possible to know upfront how far the matter will progress, it is wise to choose an attorney who has substantial courtroom experience.

While entering into a contract may provide you with a certain level of comfort that the other party will act according to the agreement, there are instances when this does not happen. The other party may disagree on what actions are required of them via the contract, or the other party may completely default on the agreed-upon terms. Regardless of the situation that you are dealing with today, hiring a commercial litigation lawyer to assist you with your issue is a smart move.


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