Business contract disputes
Clear, written contracts with customers and suppliers help to minimise the risk of disputes but when one or both parties fail to meet their obligations, our team of lawyers can advise on the best course of action.
Terms and conditions
Taking the example of a contract with an underperforming supplier, the first thing to do is to carefully check the relevant terms and conditions which normally prescribe certain remedies for a breach of contract and state what action can be taken in response to a breach, including the possibility of termination.
Then (if appropriate), you should consider speaking to your supplier – outline your concerns and tell them you are considering ending the contract for breach. They may be able to rectify the problem quickly and could offer you a better deal to keep your business.
Terminating the contract
If you’ve raised your concerns previously yet remain dissatisfied, we can advise you on your options, including how you might go about terminating the contract, without incurring penalties. We may also write to the supplier informing them that you have sought legal advice about termination. This might force them to improve their service and, in some cases, we may be able to negotiate more favourable terms.
If the problems persist, you may want to bring the contract to an end. Hopefully, when drawing up the contract, you will have been able to include an exit clause. If not, and if the penalties for early termination are significant, you might have to sit tight until the end of the term.
However, if you can successfully prove the supplier has failed to deliver on their contractual obligations, that’s a different story. If a supplier’s performance consistently falls short of their contractual obligations, then terminating a contract can be even more straight forward.
Nevertheless, you must tread carefully, because if you, yourself act in breach of the agreement, the other party could take legal action against you, which could mean you’ll be liable for payment of sums due under the contract by way of damages.
Contractual rights and obligations
It is crucial that businesses understand the terms on which they are contracting with individuals and companies and we can advise you about your contractual rights and obligations, if you have any doubts.
Our dispute resolution team has a wide-ranging knowledge and understanding of the best way to prevent and resolve contractual disputes, often through mediation. If that is not possible, we have an enviable track record at achieving success in court.
Get in touch