Four Common Causes of Contract Disputes & How to Solve Them

contract disputes

Four Common Causes of Contract Disputes & How to Solve Them

A contract dispute is bound to happen when running a business. It can happen, even if you believe your contracts are sound and have very little loopholes. Whether it’s with an employee, a contractor, a vendor, or a client, how you resolve them determines how your company will move forward with the other party. Let’s explore the four common causes of what is a contract dispute and how to solve them.

Disagreements About a Technical Term

Disagreements about a technical term in a contract happen often. Whether you or the other party have an issue with the definition of the term doesn’t matter. If one party is unhappy with how a term is defined or has trouble understanding the definition, it can lead to a contract dispute and resolution. This is a dispute that can easily be resolved. The two parties can meet in mediation to discuss the definition of the technical terms and write an amendment to the contract that expressly deals with how the terms are defined.

Only One Party Writes the Contract

When one party involved in a contract has very little or no say in the terms of the contract, this often leads to a dispute. If you or the other party did not provide any input into the contract’s terms, it could lead to a lopsided agreement. It can also cause miscommunication about the duties of one party. Mediation is the best way to resolve this issue if the contract has already been signed. If neither party has signed the contract, you can still go to mediation, but it’s best for all involved to have input in the terms.

what is a contract dispute

Missing Contingency Clauses

A strong contract has contingency clauses in it. Missing contingency clauses are common causes of disputes in contracts. Contingency clauses explain what happens to the contract should an emergency or disaster occurs. These are most often found in construction contracts, protecting the contractor if he or she files for bankruptcy, or a natural disaster occurs while building a property. Resolving this dispute would require mediation where an amendment can be added to the contract that outlines contingencies.

Loosely-Defined Terms

Loosely-defined terms can sink a contract before the work even begins. Both parties need to provide terms that are strongly defined, so each side knows what the other is bringing to the table. This dispute can easily be avoided by reviewing the terms before signing but will require mediation if the contract was already signed. Have lawyers for both sides review the terms so any issues can be brought to your attention with plenty of time to rectify them.

what is a contract dispute

Disputing the Terms of a Contract? Call Shapiro Mediation

Contract disputes need to be handled with care at all times. They should never be swept under the rug or ignored. This can hurt your relationship with the other party, especially if they involve employees. Call the experienced team from Shapiro Mediation to discuss your case today at (339) 298-7733. We will help you resolve the issue without the use of litigation.