Nerdlaw.org by Matthew Norman
Contracts can be incredibly complex, detailed, and often confusing legal documents that many parties would rather not deal with. However, in a number of business and work relationships, contracts are absolutely essential to make sure that all involved parties’ interests are protected and upheld. Whether looking at a contract between an employer and an employee, a business and a vendor, or any other legally binding agreement, the nitty gritty of contracts can be confusing, but is nonetheless incredibly important.
As such, it is important that when you are first establishing a contract with another party, you do everything possible to make sure that it is drafted as clearly and thoroughly as possible, not only to make sure your interests are fully represented and protected, but also to prevent against disruptive and potentially damaging contract disputes down the line.
Contract disputes can occur in a number of ways, and can take place while a contract is being drafted or can occur after a contract has been established and one of the involved parties feels that the contract has been violated in some way.
For tech startup owners, contract disputes in any form can be incredibly damaging, as they have to potential to divert a business owner’s attention away from running and growing their business. When contract disputes arise, they have the potential to slow, or even bring to a stop, normal business operations, especially if the dispute involves an important client or business partner.
Additionally, depending on the nature of the dispute, they can damage a company’s reputation in their field, regardless of the party at fault for the contract dispute or violation. Because of the seriousness of these situations, most contract disputes cannot be handled without the assistance of a contract lawyer. These professionals can help alleviate some of the burden of managing the dispute and working towards a resolution, and may be able to help settle a problem faster and more efficiently than if a business owner attempted to do so on his or her own. However, even with the availability of professional assistance, businesses should do everything in their power to avoid becoming entangled in a contract dispute of any kind.