It is sad enough to note that disputes between associates and partners occur way too often. The business attorneys have been resolving a business dispute in New Jersey for a long time now and they have seen small scuffles between business partners to major disagreements between two famous business partners. Regardless of the size of your business, disputes will arise inevitably.
However, you can always protect your business by being aware of the most common business disputes that may arise in your business. We will help you with the list of the most common disputes that any business may face.
Violation of Contract
It can’t be denied that the world of business entirely runs on contracts. In fact, contracts play a vital role in maintaining proper professional relationships. What if there is a breach of contract? Here are a few ways in which you should safeguard yourself from disputes arising from breach of contract:
- Everything should be written down: When relations are good, you may feel its enough crack business deals with a friendly handshake. But when the going gets tough, oral contracts have no value.
- Stay away from miscommunication: Try to ensure everyone is on the same page as this will help you avoid major disputes.
- Decide on clauses of dispute resolution: These clauses will outline what needs to be done in case of a dispute.
There might be disagreements with fellow LLC members, shareholders and the main stakeholders of your business. Here are a few reasons for such disagreements:
- Ineffective company strategy
- Violation of fiduciary duties
- Misue of the funds of the company
- Hiring and management decisions
- Conflict of interest
- Financing debts and issues
- Failure to monetize the strategies of the company
- Financing debts
During the time you begin a venture, both you and your partners may have a vision that perfectly reflects your goals. But with time, as your company grows, people may start thinking independently.
You can’t expect that all the advices will be followed perfectly by your business partners or employees, yet when you hire someone and they fail to act in good faith, they can get negligent. This usually occurs with:
- Management consultants
- Licensed third parties
You can file a case against these contractors when they have violated a duty of care and you have had to suffer some kind of material losses for that action.
When there is employee tribunals, employee discriminations, disputes over maternity leaves, disputes over salary or payment of salary, employment disputes will occur. You have to boost open communication among employees and guide them by resolving their problems. Employees need to be educated on anti-discrimination laws and programs. There should be clear-cut anti-discrimination policies that could differentiate between unintentional and intentional discrimination.
Therefore, if you run a business of your own, you have to keep in mind all the above mentioned types of disputes and know how to resolve them peacefully.