The purpose of contracts is to safeguard the interests of the persons who sign them. However, they may occasionally be misinterpreted or abused, which might result in a contract dispute, and, more importantly, serious harm to one, or both, of the signatory parties.
If this has happened to you, it is often crucial to consult a contract dispute lawyer before you take any legal action to settle the contract dispute.
If you’re not sure if – or why – you might require the services of a contract dispute lawyer, consider the most important ways in which one of these legal experts – of which we are proud to number several at Pearl Lemon Legal – can help you, we’ll be happy to explain. Contact us today to discuss your unique contract dispute issue, and we can do just that.
Why Do Contract Disputes Occur?
The number of different reasons that contract disputes occur are as numerous as the different types of contract that you might be called upon to sign. However, at Pearl Lemon Legal, as we specialise in working with business contracts, the contract disputes our team work with most often can be broken down into two basic buckets:
Material Breach of Contract
A material breach of contract, also referred to as a total breach, results in the affected parties no longer being compelled to uphold their responsibilities and gives them the option to sue the breaching party or parties for damages. These disputes are often very complex, can become very contentious and are usually best dealt with by a contract dispute lawyer, or, at the very least, with their expert advice.
Minor Breach of Contract
The terms and conditions of the agreement are not fully void in the event of a minor breach. For instance, a modest violation of a confidential information agreement may cause some harm for which a party may file a claim. However, it does not imply that the party who violated the agreement is now no longer required to fulfill its responsibilities.
In many cases of a minor breach of contract, it will be in the best interest of both parties to come to an amicable solution that avoids a contentious court process. As a part of our contract dispute lawyer team, we offer the services of a number of highly experienced and successful alternative dispute resolution lawyers who can help do just that.
When comparing material and minor breaches, it is quite simple to tell the difference by looking at the intentions and results of the activities. Let’s say, for instance, that a person or business completely changes the objectives of an agreement. A material breach would then probably be at fault.
A minor breach occurs when an objective is accomplished, but not in the manner agreed upon or under false pretenses.
Non Disclosure Clause Contract Disputes
A non-disclosure agreement (NDA), also called a confidential disclosure agreement (CDA), guards sensitive information from being used for personal gain or revealed to the public.
To prevent the consultant from disclosing their proprietary technology or business practices to outside parties, for instance, the corporation can require them to sign a CDA or NDA.
If the contract issuer then claims that the signatory has shared, leaked, or stolen information, a contract dispute may result.
Partnership Contract Disputes
Partnerships with other people, and even other companies, are extremely important to modern businesses. A business may file a lawsuit for damages if it believes a partner has violated a partnership contract or agreement in some way, such as by failing to meet certain obligations.
However, a partnership’s terms and conditions must specify its goals, standards, and obligations clearly. Otherwise, it would be challenging for a business to demonstrate that a legal violation took place. This is why it is always a good idea to have any and all partnership contracts reviewed by a legal expert before they are signed.
In the case in which such contracts were not in place, and the wording of the contract that is disputed is unclear, calling in a contract dispute lawyer sooner rather than later – as in when matters have proceeded as far as applications for court dates – can help both parties avoid expensive litigation via alternative dispute resolution. When partnerships fail, the damage done to brand reputations can be as significant as any financial damage, and can be even harder to recover from!
Sale of Goods Contract Disputes
Because of their open-ended nature and frequently ambiguous language, sales of goods contracts between suppliers and merchants are prone to disputes.
In a contract for the sale of products, the merchant relies on the supplier to deliver the goods to their clients. As a result, disagreements between wholesale merchants and their suppliers over the failure to deliver products as promised or even ship them are very common.
If a product is severely misrepresented, never shipped, or does not come as promised (SNAD). The supplier could be sued by the retailer for contract violation.
Things have become even more complicated in recent years, as the number of digital goods and services being sold across all kinds of industries and niches has increased tremendously, and determining just what constitutes non-delivery can be open to interpretation. It may take the intervention of a contract dispute lawyer to sort out these ambiguities and help both parties move towards contract dispute resolution.
Who Can a Contract Dispute Lawyer Represent?
There are always (at least) two parties involved in contract disputes, and a good contract dispute lawyer – like those on the Pearl Lemon Legal team – should be ready and willing to assist and represent either side.
For us, there are two main parties who approach us for help with contract disputes: businesses and individuals working with a business with whom they have a contract dispute.
Contract Dispute Lawyer for Businesses
Even the smallest businesses quickly find themselves entering into contracts, especially with suppliers and employees, even if those employees are working on a freelance, or ad-hoc basis. A contract dispute with either of these groups can quickly result in financial and reputational damage that a growing business can ill afford, not to mention stress and worry that no busy business owner needs.
Working with a lawyer to draft and evaluate your contracts is essential, whether your company is new or has been around for a while. When a knowledgeable and skilled attorney handles your contract requirements, they make sure that both you and your company are protected. While paying them may seem like just another expense you really don’t want to take on, the money and hassles they save you in the long run will be worth it.
At Pearl Lemon Legal, our contract dispute lawyers are not just there to represent you in court proceedings – although they can and will if needed – but to minimise contract disputes and even prevent them from ever occurring. This means working with you right from the start – when contracts are drawn up – and we’ll be happy to do so.
Contract Dispute Lawyers for Individuals
The rise of the ‘gig economy’ means that more people than ever are working for themselves as freelancers and independent contractors. There are lots of advantages in choosing to do so, and most people who do can reel all of those off very quickly.
There are downsides too, of course, and one of the biggest is that some businesses do not feel obligated to afford freelancers and independent contractors the same respect as a formal employee. Or follow the same rules when dealing with them. Far too often we see instances of this across all kinds of industries.
A fair, legally binding contract can prevent much of the abuse, but when a contract dispute does arise, an independent contractor or freelancer should not be left feeling like David facing off against Goliath, or forced to accept a resolution to a contract dispute that is unfair or inequitable, especially if doing so will damage their reputation and their finances.
These types of contract disputes are where Pearl Lemon Legal can offer a great deal of expertise that others may not be able to. After all, protecting those working in this way was one of the biggest reasons Pearl Lemon Legal was founded in the first place.
Contract Dispute FAQs
A contract dispute occurs when any party involved in a contract disagrees on any term or condition within it. The disagreement could be over what was agreed upon in the contract, how it is being implemented, or whether it was violated.
A material breach of contract, or total breach, is a substantial violation that negates the contract’s core purpose. This allows the non-breaching parties to stop fulfilling their responsibilities and sue for damages. A minor breach does not nullify the contract entirely; rather, it involves a smaller violation, and the affected party can still sue for damages but is not exempted from fulfilling their contractual obligations.
A material breach of contract, or total breach, is a substantial violation that negates the contract’s core purpose. This allows the non-breaching parties to stop fulfilling their responsibilities and sue for damages. A minor breach does not nullify the contract entirely; rather, it involves a smaller violation, and the affected party can still sue for damages but is not exempted from fulfilling their contractual obligations.
Non-disclosure clause disputes arise when there is a disagreement over a contract’s confidentiality terms, such as when proprietary information is leaked or misused for personal gain.
Partnership contract disputes occur when there is a disagreement between business partners over the terms and conditions of a partnership agreement. This could include disputes over obligations, goals, and standards outlined in the partnership agreement.
These disputes often occur between suppliers and merchants and can involve disagreements over product delivery, product quality, or contract terms for the sale of goods. Digital goods and services have added a new layer of complexity to these disputes, with disagreements over what constitutes non-delivery becoming more common.
A contract dispute lawyer can help businesses by reviewing, drafting, and negotiating contracts to ensure the business’s interests are protected. They can also provide representation in court if a dispute arises, or help prevent disputes from occurring in the first place by ensuring contracts are clear, fair, and legally binding.
A contract dispute lawyer can help individuals, such as freelancers and independent contractors, by ensuring that their contracts are fair and legally binding. If a dispute arises, a lawyer can provide representation and help the individual navigate the legal process. This can be particularly beneficial in situations where the individual is dealing with a larger entity, such as a corporation.
It’s often crucial to consult a contract dispute lawyer before you take any legal action to settle a contract dispute. They can provide advice on your legal rights and responsibilities, help you understand the potential outcomes, and guide you through the legal process. A lawyer can also help you negotiate a resolution to the dispute, potentially avoiding the need for litigation.
Yes, a contract lawyer can help prevent disputes by ensuring that contracts are clear, fair, and legally binding. They can provide advice on potential pitfalls and help negotiate terms that protect your interests. A lawyer can also provide ongoing advice as circumstances change to help avoid future disputes.
The outcomes of a contract dispute can vary widely, depending on the nature of the disagreement, the terms of the contract, and the parties involved. Potential outcomes can include one party being required to fulfill their obligations under the contract, the contract being amended, or damages being awarded to one party. In some cases, alternative dispute resolution methods, such as mediation or arbitration, can be used to resolve the dispute.
