Commercial disputes occur when two businesses have a disagreement, regarding a contract of some sort. This contract is an agreement that is legally binding, no matter if it is an oral or written agreement. There are other types of contracts called implied contracts, where nothing has been written down or said, but there is just an implication involved. Three ways to resolve any sort of dispute are through litigation, an Alternative Dispute Resolution, or Arbitration/Expert Determination.

Advantages to Dispute Resolution:Individuals involved can appear to be noble, strong, and well conducted-Lessons are learned about how a business is ran-The personal side of an argument can be presented-An injustice can be remedied-Undesired commercial situation can be remedied

Disadvantages to Dispute Resolution:The publicity is often bad-Financially expensive-It is often a very time consuming process-There is an increase in pressure and stress

There are four main points of action that need to be taken. The first one is that the situation needs to be discussed with the legal advisers in charge. The next step includes attempting to resolve the entire situation in an amicable way, without any prejudice. Then, be sure to gather all the documentation and facts that will be needed for the case. Finally, you need to review all of the options available and take into consideration the implications involved.

Once these steps are taken, the type of resolution that will take place needs to be chosen:

Alternative Dispute Resolution

Both parties are able to use this method and settle outside of court. Arbitrators must be brought in to hear both sides of the story and then a decision can be made from this.

Litigation

This method allows for both parties to have a dispute that doesn’t involve the court. It has to be a mutual agreement though and arbitrators have to hear both sides of the case.

Alternative Dispute Resolution

The most common method used for Alternative Dispute Resolution is mediation. There are often many negotiations involved with this form of resolution. These are also often arranged very quickly and are used to bring clarity to the most disputed issue on hand. It is also very flexible, when compared to the other two types of dispute resolution.

The final stages of taking care of commercial disputes involve assembling your team, preparing for action, settling the dispute, and confirming the entire outcome. Hopefully, after everything is over and done with, lessons will have been learned and all will be resolved.

You can learn more about commercial disputes and how finance and legal firms can help in commercial disputes cases. For a more detailed information, please visit the BTG Forensics website.

categories: