Commercial Disputes Prove Costly for Businesses, Buyers
Not all contracts will be entered into with the best of intentions. At other times, contracts which were well-intended at the start may later prove to be unfair and in need of revision. Business owners who find themselves on the losing end of such agreements must seek legal representation as early as possible. Commercial disputes which are allowed to fester can threaten not only a company’s bottom line, they can also lead to shareholder litigation, consumer complaints and a total collapse of the business unit.
Vendor, Employment Agreements Must Be Carefully Construed, Strongly Enforced
According to our Middletown business lawyers, commercial disputes can present in a variety of ways. Disagreements between vendors and suppliers will often disrupt the ability to meet consumer demand. When consumers cannot find what they need, they will often take their business elsewhere. It is imperative that before entering into a vendor agreement, both sides reach a consensus on a variety of issues, including whether sales will be guaranteed or true, the beginning and end of payment terms, the potential penalties for missed deliveries and the proper procedure for submitting remittance details.
Contractual relations are at the forefront of numerous other commercial disputes. Employment agreements can be violated by a former employee who resigns in order to take a comparable position with a competing company, if the employee is subject to a valid non-competition clause. Businesses have a right to protect their innovations, research and confidential customer data. To that end, employees who misappropriate valuable trade secrets can face stiff penalties for their actions. Moreover, a company which profits unfairly from ill-gotten trade secrets can also be held liable.
Inattention to detail often leads to adverse results in real estate transactions, particularly those involving commercial property or land development. A commercial real estate contract which is not meticulously reviewed – including all timelines and contingencies – can later be enforced to the detriment of a party who failed to exercise their due diligence. Purchasers of commercial property or undeveloped land must also seek out information on all applicable zoning ordinances and potential liens before completing a sale. When a project cannot come to fruition, investors and other stakeholders may seek to recoup their losses with a lawsuit.
Not All Commercial Disputes Wind Up in Court
Litigation is costly. Not only will a protracted legal battle cause an aggrieved party to incur attorney’s fees, it can also diminish the value of a company’s reputation and brand in the court of public opinion. For that reason, many parties prefer to settle their commercial disputes privately. At McOmber & McOmber, we can assist clients who seek a resolution of their commercial dispute through mediation or other alternative dispute resolution techniques. By pursuing such a path, companies can avoid the specter and expense of trial.