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Employment Disputes > Commercial contracts

Commercial contract dispute resolution

Even the most carefully drafted and meticulously detailed contracts can, on occasion, lead to disputes. Our dispute resolution solicitors are here to help when things go wrong.

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In business, contracts are a vital tool, allowing you to protect your interests and also helping to avoid costly and time-consuming litigation. Ensuring the contracts that you have in place are drafted properly is an essential part of running any business.

However, there are times when, for one or more reasons, a dispute arises over a contract. It is at those times when professional legal advice from Canter Levin & Berg Solicitors can make a difference and potentially save your business both time and money.

As Dispute Resolution Solicitors, we provide legal advice to both business owners and contractors who might be involved in a dispute over the terms of a contract.

Common commercial contract disputes

When dealing with a commercial contract dispute, the success of any legal action will depend on the meticulous analysis of each and every term in the contract by your legal team.

Through our dealings with many commercial contract disputes we have identified some of the most common types of contract or agreement that can give rise to a dispute.

A dispute over a contract covering the sale of goods and the supply of services

If you have a contractual dispute with another business involving the supply of services, or the sale of goods then our solicitors can help. In this type of contractual dispute, it is usually the case that the complainant is the one who has purchased the goods or services.

Typically the complainant will allege that the standard of the goods, or the quality of the service did not meet that which was specified in the contract. Sometimes the dispute is not over quality, but might be because the goods were delivered late, or were not fit for their intended purpose.

A specialist Dispute Resolution Solicitor can help if you are involved in a dispute over the sales of goods or the supply of services. Your solicitor will examine the exact terms of the contract in order to determine what, if any breaches of contract occurred, we can then provide you with advice about your legal options and assistance in calculating the level of compensation which you can reasonably expect from the other party.

Disputes over a contract for the sale of a business or shares in a business

Contracts covering the sale of a business, or shares in a business are amongst the most complex forms of commercial contract. It is not surprising then that these highly complex contracts can give rise to contractual disputes where one or both parties may seek independent legal advice to help resolve the dispute.

Disputes might arise during the sale of a business if there are warranty claims, unpaid deferred consideration and earn out provisions include within the contract. Any of these could trigger a dispute, as they will have a bearing on the amount of money paid to purchase the business, where the price paid may be linked to the performance of the business after the sale goes through.

An additional complication when disputing the price you have paid for a business might be the existence of time limitations for raising complaints. These limitations are often included within the contract of sale, so it is important that you seek legal advice from a Contractual Disputes Solicitor as soon as you become aware of any problems with the newly purchased business, such as lower-than-promised performance.

When a dispute occurs involving a commercial agent or a distribution agreement

If your business relies on agents to sell your products, then you should be aware of EU and UK legislation that governs the contracts you might enter into with your agents. Getting professional legal advice if a dispute occurs between a business and an agent of that business can help to avoid costly court action.

Similarly, contracts that set down arrangements for distribution of your products can also be a source of disputes.

Common causes of disputes arising from distribution contracts include exclusivity, where an agent or retailer may have sole rights to sell your product in a country or a certain geographical area. A dispute might occur if you knowingly or unknowingly allow your product to be sold by another agent or retailer within that area, in breach of the exclusivity agreement.

A dispute might also occur if a distribution contract includes provisions for bonuses to be paid based on sales or performance, or if there are issues with credit.

Problems with franchising a business and franchise agreements

In order to successfully franchise a business, secure contracts must be in place. A franchise contract should address the likely causes of franchise disputes. These including issues of mis-selling, for example if a franchisee was told that there was a greater demand for the franchise in a certain area than there actually was, or if they were given unrealistic projections of future earnings and opportunities for expansion.

The advice of a Dispute Solicitor might also be required if the actions of one or more franchisees are threatening the security of the franchise network. Any dispute between franchisees or between a franchisee and the franchisor could have very serious repercussions for the franchise as a whole, so getting independent legal advice as soon as you become aware of a dispute within the franchise system is vital to avoid both costly courtroom litigation and damage to the franchise.

Disputes over consultancy agreements

There are many reasons why your business might choose to employ consultants. You might wish to draw on the expertise of past directors of the business or other key members of staff, for example if the business is in the process of changing ownership.

At other times you might need someone with specific knowledge, if you are planning on diversifying or entering a new area of business. Similarly, consultants can also help when it comes to streamlining the internal procedures and management practices within your business.

Properly drafted consultancy contracts can help to reduce the likelihood that a dispute will occur as a result of the use by your business of a consultant or consultants. However, if a dispute does occur, for example if bad advice given by the consultant has caused harm to your business, then the services of a Dispute Solicitor might be required.

Contact our Dispute Resolution Solicitors for advice on a Contractual Dispute

As Dispute Resolution Solicitors, here at Canter Levin & Berg we use our legal expertise and experience of commercial litigation to come up with practical solutions to any legal problem, such as a dispute, faced by your business.

When providing you with advice during a commercial dispute, our lawyers will help you to achieve your objectives whilst ensuring that the dispute resolution process is dealt with quickly and in a cost effective manner.

If you are facing a dispute and you would like to speak with one of our specialist Dispute Resolution Solicitors, call 0151 239 1000 now. Our solicitors can offer up to 10 minutes free legal advice over the phone. Alternatively, you can book a longer consultation with our solicitors with prices starting from £100 inclusive of VAT for a 30 minute consultation.