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Understanding And Resolving Contract Disputes

The settlement of a contract dispute may take a long time and be costly. Project delays or even harm to the working relationship might result from one side believing the other is not upholding the terms of an agreement. As a result, it’s important to find a solution quickly so that the project may resume and move forward as planned.

What Leads to Contract Disputes?

There are a few basic reasons a dispute may occur, though, of course, this will vary from case to case and industry to industry.

Ambiguity: A poorly written contract may leave requirements for each party in question. In this situation, even if a specific clause is not present in the contract, the courts will still take into account the contract’s overall context.

Not Formalised: Agreements can occasionally be reached through a variety of methods in today’s tech-heavy society. It can be challenging to determine what was agreed upon if different contract terms are negotiated during phone calls, emails, and other official communication but never formally defined in one document.

Contract Delays: Failure to deliver essential components of the contract is the most common complication of contract problems. A contract will often specify not just the specific goods or services to be given, but also the timeliness of those services. Disputes may arise if the deadlines weren’t met.

How are Contract Disputes Settled?

There are many different ways to settle disputes, some of which are riskier than others and include both out-of-court and in-court options:

Negotiation: This can take place without the involvement of a third party and includes the two parties to the contract deciding how to continue. It can lessen harm to the working relationship by cooperating to develop a win-win solution.

Mediation: An neutral third party assists the company and the contractor in reaching an agreement in this situation. If the results are positive, the parties will have decided on a course of action in the end.

Retention: In this case, a party declines to carry out the obligations under the contract until the conditions are satisfied.

Rescission: The contract may be cancelled and terminated if one of the parties learns that the other party has no intention of fulfilling its half of the bargain. This does not, however, truly terminate the contract.

Court Proceedings: Court may be the best choice if a party wants to have a formal and enforceable resolution, especially if a party wants to seek damages. If the issue simply cannot be resolved, legal action may also be required.

Advantage and Disadvantage of Out of Court Solution

When resolving a dispute outside of court, there may be more freedom in the type of agreement that can be made, some cost savings, the matter being settled more quickly, and the possibility to minimise the danger of severing important business connections. However, attempts to settle outside of court run the danger of not truly coming to a settlement. If this occurs, it may cause additional delays, and court actions may then still be required.

Advantage and Disadvantage of Court Solution

When a party is unable to reach a resolution, the court can be a powerful resource. In some cases, it may even be the only method to obtain the desired order. The ultimate objective of any action brought as a business activity in Scotland will be for it to be settled as quickly as practicable. However, going to court can take a long time, and you run the risk of getting a bad expense award.

However, by providing the option to proceed on a no-win, no-fee arrangement, SGT Law Firm is able to minimise one of the significant risks associated with court proceedings. Customers can collect debts and file claims without paying any upfront fees thanks to our creative funding approach and special agreement with a panel of specialised law firms.

In the case that your claim is successful, you will be aware of the exact fees because we have previously agreed upon a method that equally distributes the rewards and risks. You are billed a percentage of the amount you recover.

SGT Law Firm can assist in resolving contract problems. For a private discussion about your claim, kindly contact us.

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