Preventing Legal Disputes in Contracts

Running a small business demands directors and owners juggle numerous tasks akin to their larger counterparts but with fewer resources. Amidst managing operations, it’s easy for owners to overlook potential litigation risks. Legal proceedings could prove costly, time-consuming, and tarnish the business’s reputation. 

Though not all risks are foreseeable, simple solutions exist for businesses to adopt preventing legal disputes in contracts. 

Verbal Contracts Risks 

In established business relationships, verbal agreements often lack written formalities. While such agreements can constitute contracts, they lack the clarity and certainty of written ones. Over time, terms may blur, leading to disputes and dreaded legal expenses. 

Written Contracts 

Crafting contracts that delineate duties, responsibilities, and expectations for transactions, partnerships, or employment can pre-empt potential litigation. Securing signatures ensures understanding and compliance, reducing chances of dispute and minimising legal costs. 

Document Oral Conversations 

Recording oral discussions, negotiations, or disputes in writing ensures mutual understanding and clarity among parties. 

Proactive Problem Resolution 

Vigilance toward potential issues within the business not only fosters good practice but also helps avert or mitigate litigation. A proactive response, even to seemingly minor issues, can lead to a swift resolution, saving costs and deterring third-party escalation. 

A pre-emptive approach to contracts and disputes moderates financial and reputational impacts on the business. 

Should you have any questions regarding contract formation or general commercial matters please contact our Company & Commercial team. In the event you should require support in any litigious matters then our Litigation department is also available to assist. 

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