What are Business Disputes?
Just like when a person is injured in a car accident, sometimes a business can suffer damages as a result of a civil wrong (also a called “tort”) committed by another. Whether the tort is intentional or not, often the person who committed the tort can be held liable and be forced to compensate the injured business for the damages caused.
What are Some Common Business Disputes?
The most common business disputes involve breach of contract claims, such as past due invoices, non-payment of rent, or any other failure to provide adequate goods or services. As any business owner can tell you, contracts are a common part of doing business. Holding another party liable for the damages caused by a breach of contract is often a smart business decision.
Other business disputes often involve protecting one’s confidential or propriety information, reputation or business opportunities. Claims that arise from these issues include intentional torts like interference with an economic relation or defamation, as well as unintentional torts like negligent misrepresentation.
What is the Best Way to Avoid Litigation?
Business litigation can be time consuming and expensive. Achieving a good result without having to file suit is always preferable. This can be accomplished by making sure your business has adequate written agreements that govern the relationship between the business and its customers, between the owners of the business, and the business and its employees.
For instance, if the business is a limited liability company (an “LLC”) the members of the LLC should have an operating agreement that addresses topics like how important decisions are made, what happens if a member dies or no longer wants his ownership interest, and how internal disputes are resolved. An adequate operating agreement can prevent a fight between owners from killing a business.
Also, even though many contacts don’t have to be in writing to be valid, a simple written agreement, with the right terms and conditions, can help persuade customers to pay on time and make litigation, when necessary, more advantageous to the business.
At TKLO, when our clients have been wronged, we are efficient and zealous advocates in litigation. As an ounce of prevention, we help our clients by creating corporations and limited liability companies, as well as drafting effective bylaws, operating agreement, buy-sell agreements, and other contacts.
Do you know whether your written agreements adequately protect your business? Has someone caused your business to suffer? We can help. Call TKLO for a free consultation.