3 Ways to Protect Your Business During Contract Disputes
Lawyers aren’t often involved with contract formation processes until after a dispute arises following the signing of the contract. A dispute could arise when something goes wrong or when one party wants to change the relationship. The problem with contracts is that they often fail to detail the specifics of what was said between the parties. It’s not uncommon for parties to overlook what comes after the honeymoon phase, or find out that business isn’t dynamic or static and changes to relationships need to be made. It’s important to consider all possible scenarios during contract negotiations, including the reality that a dispute could become a lawsuit. There are several safeguards to take that will reduce the risk of disputes and better your chances of resolving them quickly and peacefully.
1. Put all commitments made before signing the contract in writing.
Contracts often fail to include all promises and commitments that are material to the respective parties, because form contracts, signing deadlines, or lack of bargaining power get in the way. Parties often think that anything discussed during contract formation negotiations is part of the contract, and they are not. Emails, phone conversations, or sales PowerPoints are not proof of agreement. Be sure that any critical promises made during negotiations are written into the actual contract.
2. Include a dispute resolution clause.
Rather than hope for the best in the event of a contract dispute, it’s a smart idea to include a dispute resolution clause. Such a clause could require the continuance of contractual obligations during a third-party investigation. It could also require all parties to undergo alternative dispute resolution (ADR) before filing any lawsuits. It’s wise to stipulate that meditation be used to resolve straightforward misunderstandings and resort to arbitration for more serious contractual disputes.
Should a dispute arise and there is no pre-established dispute resolution clause in the contract, you’ll want to seek the legal advice of an attorney to assess your individual case. Global Legal Law Firm is a San Diego-based law firm specializing in electronic payments litigation. Their skilled attorneys are proven complex litigation experts with experience representing ISOs, agents, processors, card brands, and the realm of commercial collections.
Global attorneys prioritize the attorney-client relationship every step of the way, from forming a contract to post-judgment enforcement. Global Legal’s areas of legal expertise include complex business litigation, commercial collections litigation, electronic payments litigation, and other issues related to the electronic payments industry. At globallegallawfirm.com you can read customer testimonials and success stories applauding the difference a Global advantage makes during a difficult time. When facing a contract dispute, working with the best group of attorneys ensures an excellent result and process efficiency.
3. Consider a contingency agreement.
The best way to solve an impasse is to reach a contingent agreement, or “if, then” promises that reduce risk about future uncertainty while providing a way for parties to agree to disagree. Contingent agreements are designed with incentives for compliance and penalties for non-compliance. When both parties are clear about their future expectations, it’s possible to negotiate expectations and appropriate requirements to fit the scenarios.
It’s essential to vet any potential business partner before beginning contract formation negotiations. You work hard to build an authoritative position and brand awareness, meaning you can’t risk getting into business with another party whose reputation is less than positive.
Maintaining social media profiles on popular social platforms is a smart, effective way to grow your brand name recognition and reach customers. Mentions on blogs, connections on LinkedIn, review sites like Yelp, features on news sites, tweets, and hashtags can all positively contribute to brand awareness. A key part of any social media strategy is social media monitoring. Not all social media conversations are favorable, and brands often don’t realize they have a security threat until negative social mentions are found.
Social monitoring tools from software providers such as LifeRaft strengthen cybersecurity by identifying, validating, and analyzing perceived threats to your brand’s people, property, or operations. Social monitoring platforms collect and perform analytics on social data from open sources such as social media platforms, and alert users in real-time about threatening posts, allowing your marketing team to brace for and respond to new events.
Digital threat intelligence eliminates the need to manually review social media posts across all social media accounts, saving you time and resources. Countless impressions can be made through mentions of your brand on social media, which is why you need to use a social monitoring tool that serves as a brand advocate.
The best way to protect yourself from a contract dispute is to detail any important promises in writing, include a dispute resolution clause, and consider a contingency agreement.