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Frequently Asked Questions About Business Disputes

What are Some Common Disputes Encountered by Business Owners?

Business owners face many issues that could result in a dispute. Some of the most common issues include contracts, compensation, loans, and work provided or completed, among others. It is important to note that a dispute may also arise between an employer and a business associate or an employee. When a disagreement occurs, it is essential to work to resolve it as soon as possible. When a disagreement lingers, it can worsen and make it harder to come to an agreeable solution.

Should I Handle a Dispute Alone?

As a business owner, you may be able to resolve or diffuse many minor business disputes on your own. However, when the stakes are high or when there is no foreseeable resolution to the disagreement, it is best to seek legal assistance. It can be best to allow an attorney to assist with the dispute in order to ensure a fair and reasonable outcome. Keep in mind that some contracts include specific methods of dispute resolution, including arbitration. Depending on the types of dispute and the consequences of the decision, it can be in your best interest to get representation from an experienced business litigation attorney as soon as possible.

Are Verbal Agreements Binding?

Generally, verbal agreements are binding; however, it can be challenging to negotiate resolution when a disagreement occurs. It is always best to put all your business transactions in writing. If you make a verbal agreement, back it up with a contract, an email, or other documentation. This will provide some proof as to the terms of the contract, the date of the agreement, and other details.

Why are Business Disputes Difficult to Resolve?

It can be difficult to resolve your own business disputes for a number of reasons. You may not know the type of documentation you need to prove your claim. Business disputes can turn into “he said, she said” arguments that have no legal basis. As a business owner, you do not have the time to devote to handling a disagreement properly. You may not want to put yourself in a position to cause a strain or fracture of a business relationship. You may end up with a poor result because you failed to use legal resources to assist with your case. Keep in mind that some disputes can have long-lasting negative impacts on your business in the future.

What is the Best Way to Avoid Business Disputes?

First and foremost, always put all business dealings in writing, regardless of how small the contract. A standard contract may not always provide you with the legal protection you expect, so have an attorney review or draft a contract. If someone gives you a contract, ensure that it protects you properly by having your attorney review it before you sign the agreement. Keep in mind that you can request changes to the document before you approve. Keep documentation on all issues regarding the contract, and back up any oral conversations with written details.

Business disputes can take a toll on your business and on your bottom line. They can hurt your company financially and can impact the reputation of your company. If you are facing a business dispute, do not delay. Contact our legal team at Moen Sheehan Meyer, Ltd. today online or at (608) 784-8310 for an initial consultation.

Published February 12, 2021
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