Understanding Contract Disputes
and How to Solve Them
Disputes in contracts arise, and if the agreement you wrote down does not help, both you and your contractor may not know what to do next. Such conflicts can be costly and time-consuming. They may also cripple the progress of the specific project. The worst is, the dispute could ruin your business relationship and damage the relationship you had with your contractor. Both you and your contractor must find how you will resolve the disagreement to avoid losses or project disruption. Read on to find out why contract conflicts arise and how to solve them.
Reasons Why Contract Disputes Happen
In most cases, contract disputes are a result of the disagreement between the parties involved in the contract. It can be because of different perceptions or real defilement of the terms and conditions agreed upon from the beginning. Other reasons for the conflict could be:
- Contract delays
- Poor administration of the contract
- Misunderstanding of the contract conditions
You can hire an expert for resolving a business dispute in New Jersey. There are also other ways of solving disputes related to business contracts. Such include:
1. Reviewing the Contract
Before you take any further steps, consider sitting down with your contractor and reviewing the contract agreement. This is why it is advisable to have the contract agreement written down to act as a point of reference during a dispute. If there was no written agreement, review the emails, text messages, or any other detail related to the contract. You can look for details that set out the area of work, the price, and the duration of the contract. Check if you noted down how you will resolve a dispute should it arise.
You can solve this dispute without involving a third party if it is not too serious. Negotiation is an effective and peaceful way of resolving conflict. It helps to avoid the costly and time-consuming legal process. Make sure negotiation is done professionally. Discuss the main issue in dispute and what should have been done. You will also need to find ways of how things will be done to fix this issue. Proper negotiation will maintain your good relationship with the contractor.
If both you and the contractor have failed to reach common ground, you may need to include a third party. Mediation involves a neutral person who will work between both parties. The person does not take any sides and helps both the business and contractor to come to an agreement. During mediation, you will need to include the terms of your resolution, and both of you must sign the agreement. Mediation is less costly and less complicated compared to the court process. You can also select an arbitrator who passes the judgment for both of you without involving the court.
4. Going to Court
If all the above have failed and the conflict is too serious, then the last resort will be going to court. This is expensive and time-consuming, and there is not total assurance that the resolution will be successful. You might need to hire a lawyer to assist you with this. The professional can be able to predict the outcome of the case should you involve the court. If the success is on your side, the contractor might be asked to cover the legal costs. Otherwise, you may have to do it should you fail. So, before you go to court, seek legal advice.
Many business disputes are easy to solve as long as there is clear communication and openness. The above are the main and right ways of solving a contract dispute. If you cannot agree with your contractor, you can look for a person with a neutral perspective to help. However, if both negotiation and mediation do not work, the only remaining solution will be to involve the court. However, before you take the last resort, try all the above to avoid costly and time-consuming consequences.