Prevention is better than cure.
Even the best managed business will encounter a disagreement or dispute at some point.
Most disputes occur because there is no clear agreement or contract in place for parties to refer to. When entering into a new agreement or contract it is very easy to focus only on the commercial terms of the agreement – this obviously can lead to problems if a dispute does arise. It is a good idea to “step back” and review a contract before it is concluded and analyse any potential risks or dispute areas. Business contracts are enforceable and parties entering into the agreement are bound by that agreement.
Tips for avoiding disputes
In all cases, prevention of disputes should be the objective.
- Make sure that you read and understand all contracts before entering into any agreement.
- The process of negotiating and preparing a contract highlights important issues that both parties need to consider. If a dispute does arise, a written contract almost always reduces the cost and complexity needed to resolve the dispute.
- Seek legal or other professional advice if you do not understand any terms used in an agreement or contract.
- Keep copies of all your signed agreements and contracts in one place so they are easy to find.
- Develop a system to remind you of key dates and details in your contracts – so you don’t miss any agreed terms and conditions or commitments.
- Commit to acting honestly, reasonably and fairly in all your transactions.
- Ensure all staff and contractors are aware of their authority to enter into agreements on your behalf.
Don’t wait for a problem to occur.
Contact BS&N If you need:
- a business contract prepared
- legal advice on an existing business contract
- a check of your contracts to assess your potential for disputes to occur
We can provide practical, professional advice including the preparation of all your contractual arrangements.