Business disputes can wreak havoc for both big and small businesses alike. In addition to possible damages involved, the legal process tends to drain both time and resources for a company. Business dispute resolution serves as a cost-effective alternative to a formal lawsuit.
Business dispute resolution generally involves the intervention of the neutral, third party mediator who can facilitate discussions between the disputing business parties. The parties can then negotiate a settlement or other type of business decision that will best fit their needs. For instance, they might come up with a payment plan for debt, or they might come up with a modified contract term.
This can lead to a much more accurate resolution than one reached by a court, since all the parties can participate in negotiations. Of course, the parties must be willing and able to act in cooperative manner.
Business dispute resolution can be used for various disputes, including those that involve:
- Business assets and property
- Business debts
- Incorporation, startup, and other "beginning phase" issues
- Internal disputes between employees of the same company
- Distribution of corporate stocks and securities
Basically, any issue that might be the subject of a lawsuit can usually be addressed through business dispute resolution. The process might be completely out of court, or it can involve some court oversight and guidance. The results from the resolution meetings may be formalized into a court order so that it carries legal significance.
Although they can occur out of court, business dispute resolutions are usually very formal matters. A lot can be on the line, so it’s usually best for an attorney to be present to assist with the negotiations and discussions. You will want to have all documents and figures ready so that they can be used for citing during the meeting.
Also, business disputes in general can often be prevented by achieving a clear understanding of contract terms. As such, you should definitely review any contracts that might be a central part of the business dispute. This can often eliminate much unnecessary conflict, since the terms should be included in the contract.
Business dispute resolution is an excellent way for businesses to handle conflicts. If it is an option for the parties, business dispute resolution can help save company time and money. You may need to hire a business lawyer for help with business dispute resolution. Your attorney can be on hand to provide you with legal guidance during the talks. Also, in the event that the dispute resolution doesn’t address the issue, your lawyer can represent you or the business if a lawsuit needs to be filed.