Your Quick Guide to Business Contract Disputes

A business contract dispute can be an extremely stressful and complicated situation, and the attorneys at Bailey & Peterson, P.C. work hard to make the process easier for you. 

The best way to avoid dealing with a contract dispute is to ensure that the contract is properly prepared from the start. It is important that the contract is drafted correctly and that all of the terms of the business agreement are clearly stated. 

One of the most important steps to take in preparing a contract is to make sure both parties to the contract are aware of what their responsibilities are, what the consequences will be if either party fails to live up to their end of the bargain, and what the remedies will be if one party needs to pursue a legal claim. Any grey area or uncertainty leaves room for interpretation and argument, which can cause lengthy and expensive litigation. For an expertly drafted contract, it's best to have an attorney create and/or review to make sure you are protected.
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What Happens if One Party Breaches the Contract?

If one of the parties fails to follow the terms of the contract, a business law attorney will need to review the contract and advise their client of the best recourse. To prove a successful case, the attorney will need to find that: 

1. The contract was legally binding; 
2. A breach of the contract was made;
3. The breach of contract had a negative impact on the plaintiff’s business; and
4. No legitimate defenses exist for the breach of contract.

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Many parties wish to pursue litigation, but oftentimes, a contract will call for alternative dispute resolution first, such as mediation or even binding arbitration. It is important to carefully review the contract to first see whether this type of legal recourse must first be sought before filing a case in civil court.
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Whether a contract requires arbitration or mediation first, or a case goes straight into litigation, you'll want an experienced business attorney at your side to keep your best interest front and center.

Arbitration 

Arbitration requires parties to agree to a neutral third party who will review the facts of the case and will make a decision that is binding on all involved. Arbitration clauses are quite common when it comes to many business contracts and are inserted in hopes of avoiding lengthy litigation. 

Mediation

Mediation involves a third party who will work with all parties involved to work towards a mutually-agreed upon resolution to the case. However, with mediation, if a decision is not reached, the parties can still pursue litigation. 
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Litigation
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If a resolution to your contract dispute isn’t reached through arbitration or mediation, litigation is the next step. Litigation is a complicated court process best navigated with the help of an experienced business attorney. Even if you are blameless for the contract dispute, one misstep in the paperwork process or in the courtroom can cost you your case. To get the best possible outcome, hire an attorney who specializes in contract law with a proven track record of successful litigation.

Statute of Limitations

If you’re involved in a business contract dispute it’s important to act quickly before the statute of limitations expires. In Colorado, whether the contract was written or oral, a party who is injured in a contract dispute typically has three years from the date the breach of contract occurs to file a civil claim. Waiting too long to pursue a legal claim can seriously harm your ability to seek legal recourse for the breach.  

Contact Bailey & Peterson, P.C. for Help With Your Business Contract Dispute Today! ​

The attorneys at Bailey & Peterson, P.C. handle all aspects of contract disputes including arbitration, mediation, or litigation. Our firm has experience in protecting small and medium-sized businesses from larger corporations who use their size and money to bully the little guy. 
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Contact Bailey & Peterson, P.C.  at (303) 837-1660 today to set up a consultation.