What is a Contract Dispute?

Any legitimate business deals with contracts, whether with an employee, client, vendor, or other business. Drafting a contract can be a real hassle at times, but having one in place is well worth it. A contract can help protect you legally should an issue occur. Contracts outline the responsibilities of each party and help them understand what remedies are available should a breach of contract occur.

A contract dispute can occur when the parties disagree over the terms or performance of the contract. One party may believe that the other has failed to fulfill their contractual obligations, requiring a legal resolution.

How serious is the conflict? It depends on the type of breach. Is it minor or material? A minor breach of contract does not typically undermine the entire agreement. A material breach, on the other hand, significantly affects the core purpose of the contract. You may need to take legal action or terminate the contract altogether.

A breach of contract occurs when one party fails to fulfill their obligations as outlined in the contract. Examples include late delivery, non-payment, and substandard work.

Contract disputes can also arise from:

• Ambiguities in contract terms. Misinterpretations due to vague or unclear language in the contract.
• Failure to perform. Inability or refusal of a party to fulfill their contractual obligations.
• Fraud or misrepresentation. One party provides false information or misleads the other during contract negotiations.
• Disputes over payment. Conflicts about payment terms, amounts, or timing.
• Force majeure. Events like natural disasters or unforeseen circumstances can prevent performance.

Settling a Dispute

If you and the other party cannot come to an agreement, here’s what you can do:

• Communicate. Initiate a conversation with the other party to clarify misunderstandings or miscommunications.
• Seek negotiation. Work together to find a mutually agreeable solution, such as amending terms or adjusting timelines. Be prepared to compromise to reach an agreement.
• Use alternative dispute resolution. Engage a neutral third party to facilitate discussions and propose solutions. Opt for a legally binding resolution from an arbitrator, often faster and less expensive than going to court.
• Seek legal help. Engage an attorney experienced in contract law to assess your position and guide your actions.
• Escalate to litigation. If other methods fail, pursue legal action to enforce the contract or seek damages. You may have to file a lawsuit and go to court. A judge will interpret the contract and resolve the dispute, but this process can be time-consuming and costly.

Contact Us Today

Contract disputes can happen at any time. It’s a good idea to understand the next steps and how to resolve issues so you can move forward quickly.

The experienced team at Brown Dunning Walker Fein Drusch PC can assist you with your business matters. Our Colorado and Arkansas business attorneys offer the services of a large firm with the efficiency and cost-effectiveness of a smaller firm. We know business. Schedule a consultation today by calling (303) 329-3363 or (501) 588-4460.