A contract is an agreement two parties make. With a contract, one party decides to provide goods or perform a service in exchange for either monetary payment or other services or goods.

You can form a contract when there is an offer and an acceptance between you and the other party. Sometimes, an offer of acceptance is called a mutuality of assent or a meeting of the minds. If you and the other party can’t reach an agreement, there’s no enforceable contract.

Sometimes, contract disputes arise, and they usually have more than a single cause. In fact, there are a number of common reasons why contracts come into dispute.

Common Causes for a Contract Dispute

Changing Circumstances

Changes in one party’s economic circumstances can make a contract somewhat more onerous to one side. Such conditions may determine (for one party, at least) that it’s easier to breach the contract than to comply. Such disputes may be resolved by renegotiating parts of the deal so that it still benefits both parties.

Vague Terms

A vaguely drafted contract leads to confusion. You and the other party could read the same paragraph in totally different ways. What’s more, vague terms can lead to the entire agreement falling through if action isn’t taken to reconcile the different interpretations.

You can avoid these kinds of disputes by having an experienced contract lawyer on your side who can draft or review the contract for you.

One Side Believes They Can Negotiate a Better Deal

Sometimes, when there’s an element of inequality in bargaining power between the two parties, the more powerful party tries to throw their weight around by demanding contract changes that benefit them. If you’re trying to fight this kind of contract dispute, you need a contract attorney in your corner to properly protect your rights without losing an important business or personal relationship.

Change in Business Viability

If you suddenly have a cash flow issue or something else that puts your business in danger of falling apart, you may struggle to honor your commitments. But it’s in the interest of both you and the other party to find a way to resolve the dispute and make the agreement work for both of you.

Misunderstandings

When a contract is either an oral or informal written agreement, it’s easy for both parties to have different views of the deal. This is more serious than a few vague terms. When such misunderstandings arise, the two parties don’t usually agree on the basis of the contract.

Know Your Rights

Contracts can limit your rights, even when it comes to which court you can bring a lawsuit to. Contracts can even limit as to whether or not you’re entitled to a jury, they allocate the payment of attorney fees, and even stipulate whether another resolution, such as arbitration or meditation, is necessary.

Written contracts usually contain legal terms like “special damages” or “court costs,” and even “defaults.”  Often, these terms don’t mean much to nonlawyers.

If one party breaches a legally binding contract, such terms have a significant effect on the damages and remedies available. An experienced contract attorney can help you understand the terms and protect your rights during a dispute. That’s why it’s important to consult with an expert before you sign a contract.

Know Your Options for Contract Disputes

When you’re faced with a contract dispute, you need to know your options. An attorney will help you thoroughly evaluate your options and develop a strategy. Since each dispute is different, there’s no one-size-fits-all solution for every instance.

Typically, contract disputes may have the following options:

  • Concede to the other party’s demands
  • Ignore the clear breach of contract
  • Try to resolve the dispute through mediation
  • Resolve the dispute by negotiating a change to the contract
  • Agree to arbitration as a resolution
  • Go the route of formal litigation

Have an Attorney In Your Corner

It’s important to address contract disputes as early on as you can, instead of leaving them to fester into bigger, costlier issues.

Make sure you have an experienced attorney in your corner to protect your rights should you be involved in a contract dispute.

Book a consultation at Principal Law Firm today.

 

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