Disputes and their resolution
Inevitably, disputes arise. When they do, Azrights will find the most appropriate and cost effective way to help you conclude them. We focus on solutions, not problems, and with a clear understanding of your objectives, we will help you to achieve the desired results.
Where possible we consider alternative methods of dispute resolution with you, such as ADR or mediation, and direct negotiation. The nature of the relationship between you and the other party may suggest the course of action for resolving your dispute.
ADR is worth considering even if traditional means of litigation will be necessary to resolve the dispute. Courts take a dim view if no attempt is made at mediation. When mediation works, it has the added bonus of helping preserve the relationship between you.
Tips for reducing the likelihood of disputes
To reduce the risk of litigation aim to record the important terms of your business contracts in writing, so there is clarity about duties and obligations.
Contracts may be made formally or informally in writing, by email, SMS text message, or orally. A verbal agreement is no less binding than a written one, but is more likely to lead to arguments as people forget who said what when or agreed to do what when.
If such disagreements blow up into a full-scale dispute, once you are already committed to the transaction, they can be disproportionately costly and time consuming to resolve. The problem is often due to the difficulty of unravelling what each party's contractual obligations are - that is what was actually said and agreed.
If a contract is oral rather than written, then working out its terms involves revisiting the past to recall who said and did what and when. If the parties' memories of the facts do not coincide, then ultimately it is for a court of law to decide what are the actual terms of the contract. The court would do this by hearing evidence, and reaching its own conclusions as to whose version of events to believe. This can be an extremely expensive, stressful and time consuming way for the parties to proceed, where even the party that 'wins' would end up losing.
Although there is the risk if you start out by trying to record your agreement in writing, that the very process of discussing minutiae may result in a serious disagreement, it is actually far better to fall out before you have got too involved, than to tiptoe into the relationship only to discover later on that you are at odds, and incompatible.
However disappointing it may be to see a hoped for business relationship founder before it has even begun, it is far better to flush out problems at an early stage, and avoid taking the relationship further, than proceeding with an unsuitable business partner.
What next?
If you are in a dispute contact us for a free initial consultation. Alternatively, if you want to avoid future misunderstandings contact us for help in drafting an agreement.
