A contract dispute can disrupt workflow, harm relationships and expose your organization to distrust. Avoiding disagreements requires a constant effort to communicate.
A good contract is one that you continually work to improve. You should address any breaches of the agreement promptly to always enforce your expectations.
Preventing contract disputes
There are things you can do to safeguard your contracts from costly disputes. According to LinkedIn, preventing contract disputes include the following actions:
- Involve your legal team
- Monitor contract performance
- Know your expectations
- Draft precise clauses
- Build trust
The most effective business relationships involve an active effort from all parties to show respect and honor the terms of the agreement.
Resolving contract disputes
If a contract dispute does happen, you will need to resolve things before they threaten your organization. There are many ways you can go about this, but you may first want to try negotiation. You might be able to effectively negotiate with the party at odds to determine a reasonable solution. If this fails, you could consider mediation or expert determination. In serious cases, you may need to resort to litigation to protect your business from further harm.
If you experience a contract dispute, you may feel uncomfortable jumping into other agreements any time soon. When you feel ready to explore that option again, prioritize communication. Hold regular discussions to determine that the contract continues to serve everyone’s needs according to their expectations. With the right strategy and a commitment to respect, a good contract can facilitate an effective, sustainable relationship.