On Commercial Contractual Disputes, When Do You Litigate?

by 48 Minutes | Wednesday, Jan 25, 2017 | 331 views

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In the commercial arena, contractual disputes are inevitable and may often arise. Nobody enjoys confrontations and worse, they may take your focus away from running the daily business operations efficiently. That’s why most business owners dealing with contractual disputes resort to litigation immediately. However, is litigation the only way to resolve these disputes? When exactly do you need to take a disagreement to court?

Negotiation: Private and Inexpensive

Before you take a contract dispute to court, you may consider negotiation. Communicate with the other party and do your best to work around the disagreement on a commercial contract. You may hire an attorney to negotiate on your behalf, but you still need to participate in reaching an agreement. Negotiations are private transactions, so there are no specific procedures to follow. More importantly, negotiations won’t cost you a lot of money so they are worth considering when it comes to resolving commercial disputes.

Mediation: Voluntary, Informal, and Flexible

When you and the other party failed to reach a resolution through a negotiation, a mediator may help both parties to explore other ways of resolving the differences. In mediation, however, both parties must voluntarily agree to proceed with the process. In a way, mediation helps reduce hostility and preserve the ongoing relationship between you and the other party. More importantly, it would save you from spending too much time and money when going to a trial.

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Litigation: Binding and Public

If negotiation and mediation did not work for you, then you can file a lawsuit against the other party. According to commercial litigation lawyers in Brisbane, litigation won’t be a voluntary process as the defendant must participate. Also, the court proceedings and the records will be open to the public. More importantly, the decision in this process will be final and binding. But since the case will go to court, litigation will definitely cost your business a substantial amount of time and money.

The method you’ll use to resolve the contract dispute mainly depends on your particular needs. You may want to consult with an attorney to help evaluate your situation and provide you with legal options.

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