Avoiding business disputes

On Behalf of | Feb 4, 2022 | Business And Commercial Litigation

Most North Carolina businesses experience disputes in the course of running their operations, and they can range from minor problems with customers to moderate or even major issues with other business clients and vendors. These can sometimes be eliminated with a reasonable concession in a quick time frame, or they might be drawn out over time and eventually settled with an internal discussion of the particular issue. It is important to remember that litigation can be expensive, and there are steps that can be taken beforehand to avoid this unnecessary expense.

Informal internal negotiation

A minor breach of contract issues or simple operational issues can often be eliminated when all parties have a better understanding of the contract responsibilities and expectations of each party. This can even include problems with multiple-party relationships. Just as would happen in a mediation negotiation, listing all of the issues from your perspective and evaluating concerns from the other parties is a step in the right direction. Putting yourself in the other party’s position is a highly effective form of communication improvement that can quickly help in avoiding looming business litigation.

Evaluate relationship history and future goals

Another move in a positive direction is to evaluate the nature of the business relationship from the start to the present. If both entities have historically profited, then there is clear incentive to maintain the relationship going forward. There can also be issues such as changing legal requirements that impact both businesses. Breach of contract issues can be serious, and agreement alteration cannot be ruled out completely when one party won’t continue under the old contract consideration guidelines. Avoiding a potential legal filing is typically the goal regardless of the issue.

Always remember that good avenues of communication are vital to ongoing, long-term, profitable business relationships. Avoiding a communication breakdown is what all effective business managers want to accomplish. You should be realistic in what alteration your business can provide and how it impacts your own operation.