One of the main reasons to use a contract is to avoid a dispute by getting all of the details in writing. It also provides some level of guarantee that goods or services will be rendered, or that an employee or business partner will act in a certain way.
Unfortunately, these contracts themselves can sometimes lead to disputes. These can be difficult to resolve, so let’s take a look at some of the reasons that they happen.
The contract contains some level of ambiguity
The more precise you can make the contract, the better. You never want anyone to be interpreting what the clauses mean. If one party interprets it in a different way than another party, or in a different way than it was intended, both sides may feel they are right as a dispute ensues.
The contract is unrealistic
Ideally, this type of contract would never be signed, but the fact that it’s unrealistic may only become clear after it is signed. In this case, the offending party could not fulfill the contract even if they wanted to.
Parts of the contract are missing or details have been left out
Details that are missing may seem very simple but can cause huge problems. If a business owner assumes delivery will be made in the morning, for instance, but only specifies a day and not a time, he or she could be frustrated when it isn’t made until the evening. But has the contract actually been breached?
Resolving a dispute
Disputes are costly and time-consuming for all involved. If you’re going through one, you need to know what steps to take to resolve it so that you can get your business back on track.