As a business owner, you undoubtedly strive for fairness and honesty in your dealings with employees, shareholders, colleagues and competitors.
However, the longer you are in business the more likely it is that you will face issues that require legal attention. Here are four of the most common business disputes.
Issues with those who work for your company can arise at any time. An employee might cite poor working conditions or discrimination over age, sex, gender, race or some other protected characteristic. Another employee might believe he was wrongfully terminated. Yet another might claim she was unfairly passed over for promotion.
You and your partners may get along well for years until a change in leadership or disagreement over the direction the company is going in causes friction. Financial problems will often trigger a dispute. If allowed to fester, disputes with your partners may have to settle in court.
When it comes to a business-to-business dispute, it may be imperative to engage in some form of alternative dispute resolution early on in order to keep the problem from escalating. Good business relationships are important and preserving them should be the top priority.
A contract dispute can involve anything from an employment contract to a non-compete agreement to a severance package. Having clarity in the preparation of any such document is essential since business contracts are legally binding. Most contract disputes arise because one party fails to honor the contract according to its terms, usually a deliberate act that may eventually lead to litigation.