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What Are the Most Common Types of Business Contract Dispute Cases?

by Karl Pearson • September 27, 2021

Business Contract Dispute

No matter how careful you are when running your business, you will inevitably run into situations where you have a business dispute that requires legal representation. The majority of business disputes occur when one party breaches the terms in the contract agreement. These types of business disputes are extremely commonplace and take place in all business sectors nationwide. Today, we will examine the most common types of business contract dispute cases that every business owner should know about.

1. Commercial Leases

Commercial tenants and business owners can run into problems when debating the commercial lease contract. Commercial lease contracts often contain complicated and confusing language that makes it difficult to understand the contract terms. You should always speak with a small business lawyer before signing a commercial lease contract. Your attorney can help you understand the contract terms and avoid any commercial business litigation further down the road.

2. Consumer Contract Disputes

Whenever you sell a product, you have entered into a legally binding contract with the consumer. The idea is that when a manufacturer sells a consumer a particular product, they are promising that their product will not hurt or injure the customer. It is expected that your product is of satisfactory quality, as described and fit for purpose. If you fail to honor this agreement, then the consumer could sue you for breach of trust.

3. Company Contract Disputes

As a business owner, you will need to enter into contracts with businesses from around the globe to remain competitive and operate efficiently. Unfortunately, you could run into a situation where the other party violates the terms of the agreement. If this is the case, then they could potentially be civilly liable for any damages suffered due to the contract breach. An experienced attorney can help you evaluate and monitor your business contracts to ensure the other party holds up their end of the contract.

4. General Material Breach

A general material breach occurs when one party refuses to follow the terms of the business contract. This type of behavior hurts both parties, making it difficult for either side to fulfill the terms of the contract. The purpose of the contract could be completely wiped out, giving the non-breaching party an opportunity to seek legal remedies for the harm caused by the breach in court.

5. Non-Disclosure Agreements (NDAs)

There are many reasons why you would ask another party to sign an NDA. For example, you may want to protect your intellectual property and ensure that another business does not attempt to steal it or sell it to someone else. If you have reason to suspect that the other party violated the terms of the NDA, then you should consult with an attorney immediately. He or she can review your case and determine whether you have a viable breach of contract claim.

6. Non-Compete Agreements

Many employers require their employees to sign non-compete agreements that prohibit them from working for a competitor for a certain number of years. Arizona Courts have developed a standard to determine whether an employer’s non-compete agreement is enforceable. A properly drafted non-compete agreement can keep you from entering into costly litigation.

Avoid Business Contract Dispute Cases With the Help of Pearson Law, PLC

Attorney Karl Pearson has years of experience handling business contract dispute cases. He knows that the best way to avoid a contract dispute is to have a properly written contract with clear and concise verbiage. This will make it difficult for anyone to accidentally breach a contract. For more information about business contract disputes, contact him today at (480) 820-1800 to schedule an initial consultation. He will answer your questions and help you address other common legal issues that small businesses face.

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