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Common Types of Business Disputes and How to Resolve Them

By January 2, 2018 July 30th, 2019 No Comments
f you run a business, a dispute is sometimes impossible to avoid. Once a conflict arises, resolution should be the focus. Here are three common types of business disputes and options for what to do if your company encounters one of them:

1. Partner Disputes

Business partners do not always see eye to eye. This type of dispute is common when choosing leadership positions within the company, deciding financial compensation, and changes in ownership. They can also occur if there is a lack of organization.

2. Breach of Contract

Contracts are a major component of any business. Sometimes contract violations occur due to unclear or incomplete contractual agreements. When someone involved in a company violates part of their contract, large or small, it can lead to litigation.

3. Business to Business Disagreements

This type of dispute usually occurs within the free market. If a company is involved in a merger or other type of activity that is deemed unfair by other companies in the market, litigation may be necessary to resolve the issue.

Similar to these issues, a business divorce is a serious disagreement about how a company is run, and can lead to a buyout, dissolution, or split of a company. The divorce can be a result of securities fraud, death, poor planning, and many other business altering activities.

There are many proactive measures those starting a new business can take, utilizing the assistance of a knowledgeable attorney to prevent many of these conflicts from arising in the first place. Operating and partnership agreements can go a long way in saving you time, money and heartache down the road.

If you do encounter disputes in your company, consulting a lawyer may be helpful. They can best determine the right legal pathway for you. When it comes to business disputes, litigation is a common path. If the dispute occurs internationally or you would like to keep it discreet, arbitration may also be an option for you. Arbitration will also keep the dispute out of court. If the dispute is minor or the parties involved are approaching common ground, mediation can lead to a resolution.

Aiken Schenk’s team of skilled attorneys have a long history of business dispute representation. Our attorneys Joe SchenkShawn AikenHeather Macre, and Philip Rupprecht are here and ready to help you with your needs.

Our blog posts contain general information about legal issues and developments in the law. Our posts, however insightful, do not constitute legal advice. Yes, we’re pretty awesome attorneys, but we’re not your attorneys (yet) and just reading our blog posts does not create an attorney-client relationship. You should consult with an attorney licensed in your jurisdiction (not our clever blogs) for advice on specific legal issues.