Everyone starts a business deal with the expectation everything will go properly. However, there are situations where things go awry. If you have a signed contract and you feel the other party has not upheld their side of the bargain, a contract dispute would be the next phase. Business deals will require the intervention of an experienced contract attorney to handle the proceedings. No contract is perfect, and disputes can arise. What is the best way to handle a dispute?

Potential Issues

Contract law is often a complex subject area as it covers such a broad range of issues in modern society. When you buy a product (a computer program for example) and there is an enclosed warranty in the box, you have just formed a contract with the manufacturer of that product. If you agreed to sell your bike to a neighbor in exchange for them mowing your lawn every month over a certain period, you have formed a contract. Put simply, almost any agreement between two or more people (or companies) could have potential contract law implications.

There are some issues that repeatedly come up in contracts and disputes over them.

Contract Formation

An important question in every situation is whether or not a contract even exists. Contrary to what many believe, not all contracts need to be in writing. However, a verbal contract must conform to strict regulations in order to require a person to act under the agreement.

At a basic level, a contract must contain a mutual agreement between parties to take certain actions. The actions could be paying money for goods and services, exchanging goods, exchanging services, or not taking particular action in exchange for some compensation.

If someone is attempting to enforce a contract against you that you dont believe was ever actually formed, an attorney will be able to review the relevant facts and provide guidance. Similarly, if you would like to enforce a contract against an individual, an attorney can also help in that regard. In order to prevent such disputes in the future, it may be wise to consult an attorney before entering into formal agreements, to ensure that the formal requirements of a contract are addressed.

Validity of a Contract

Another similar question revolves around whether a contract is actually valid and enforceable. This issue acknowledges that a formal contract between parties was created, and questions whether or not it should be enforced.

There are many considerations which modern courts consider in order to determine the issue of validity. Most center around concerns of public policy, such as contracts that are reached through fraud or deceit. Courts consistently hold these types of contracts invalid. Additionally, contracts that are now impossible to complete, due to an unforeseen occurrence may also be declared invalid.

Performance Under a Contract

Typically, contracts require both parties to take some form of action. At times, one party will not be required to act until the other party completes their end of the agreement. For example, say you entered into a contract to have someone paint your house in exchange for $500. Your obligation to pay the painters the $500 does not arise until they complete the job. (More complex issues arise when dealing with violating a contract in the middle of one party performing their obligations. Suffice it to say, if you think this is your case, you will likely need to seek assistance from an attorney immediately.)

Once one party has fulfilled their end of the agreement, the other party will often be required to do so as well.

Any of these issues can create the need to consider legal action against a party to the agreement, and may result in legal action being brought against you. Should either of these circumstances be the case, it will be important for you to act quickly-and it would likely be advisable that you seek legal counsel.

Contact an Attorney to Help You Through the Litigation Process

When a dispute arises, it is essential that you act quickly because there are often strict deadlines for certain actions. Importantly, you will need to start gathering all of the documentation surrounding the contract and, if applicable, obtain copies of key documents such as; anything with signature(s), relevant photographs and drawings. These will be helpful for your attorney to begin work on the case immediately, and your organization of these documents will be beneficial for the attorney to begin analyzing your case.

Attorneys are essential in guiding you through a litigation process that can often be too complicated for individuals unfamiliar with the court system to navigate. Specifically, there are steps your attorney can take you through, in order to strive toward an optimal result for your claim

Informal Negotiations

First, informal negotiations between your attorney and the opposing party (or their attorney) could resolve the dispute before either party incurs court costs or accrues excessive legal fees.

Mediation

Next, your attorney could lead you through a more formal mediation process where a third party will review the case and suggest a particular course of action.

Arbitration

Often, the contract language will specify formal Arbitration Process as being the desired method of dispute resolution. Should this be the case, it will be spelled out in your contract as to the applicable rules that apply. Your attorney will be able to guide you through this area, that is typically more cost effective for the parties, but can sometimes be more procedurally complicated.

Here, a licensed Arbitrator will hand down a binding decision upon the parties.

Litigation

Formal litigation proceedings are typically the last resort, when parties truly cannot agree on an amicable solution. At this stage an attorney is absolutely essential because of the complex requirements imposed by the Civil Court System. This process could involve in depth investigation (Discovery) and several Court Hearings, before a result is reached. Beyond the initial Trial, subsequent appeals may be brought on behalf of the losing party, which will only further complicate the process.

(It is important to note here that a settlement may be reached at any point during this process)

Remedies

Ultimately, your attorney will work toward recovering one of several different types of remedies depending on your specific situation. These can include a simple cash award for reimbursement for any damage caused by the breach of contract, an Order for one party to perform on their end of the contract, and (in rare cases) money to penalize the actions of the other party (that may include attorney fees.)

Does Any of This Sound Applicable to Your Situation?

The process of handling a contract dispute is a challenge for anyone. Contract disputes may include a number of legal concepts, which often become complicated. If you need assistance with a contract dispute process, let our knowledgeable legal team help you work through this situation. Contact CovelliLaw Offices today for a free initial consultation.