5 Essential Facts You Should Know About Commercial Disputes
Commercial disputes are synonymous with business litigation. The aspects covered by this area of the law vary in complexity. Business owners are not expected to have deep knowledge of commercial litigation. They should know the following five essential facts that will help them be prepared.
What Commercial Litigation MeansMany business owners expose themselves to higher risks of being dragged into a commercial litigation dispute because they are not aware of what constitutes grounds for litigation. In order to avoid commercial litigation, you must first know what you might have to deal with. These are the most frequent types of commercial disputes:
- Breach of fiduciary duty
- Breach of contract
- Tortious interference
- Employment disputes
- Franchise disputes
- Antitrust and trade cases
- Trade secret disputes
- Insurance disputes
- Uniform commercial code disputes
- Disputes between partners
- Post-closing disputes
- Shareholder disputes
Act FastWhether you're thinking of suing another company or you're the one who's being called to justice, you have to be proactive. Your company's future is at stake, and the more you wait, the worse it gets, so don't delay this matter. The only way out of commercial litigation is getting an experienced lawyer and start preparing your case. Once a specialist takes in charge, your primary concern is to be transparent and provide him or her with the evidence they require.
It's Essential to Keep Your Documents in OrderIf you are involved in a commercial dispute, you'll have to be ready to either prove your innocence or sustain your claim. No matter what side you are on, you'll need proofs, and this implies documents. Therefore, it's important to save and store and all your business documentation in order. Keep all your contracts in hard-copy and electronic form. Make copies of all your essential documents and store them outside your office as a backup solution. Do the same with your electronic files; store them on a PC, or hard you're not keeping onsite. Don't forget that business correspondence can be an essential factor for your litigation case, so store your emails in an archive.
Consider ArbitrationThere are other options besides commercial litigation, namely mediation or arbitration. Often, it is better for both parties to resort to these solutions in order to avoid a costly and time-consuming legal trial. Mediation can be the key to a win-win situation where both sides save precious time, energy and money. Settling a case outside the court is a short way out, but both parties have to agree on this otherwise, the case will go to court.
Always Be PreparedAs your company grows bigger, so are the risks of facing a commercial dispute claim. Many business owners are reluctant to talk to a lawyer before they need one. This behavior itself raises the risk of being sued because without a lawyer; it's hard to know what legal pitfalls you should avoid. Even if your business has just started to flourish, it's better to start thinking about getting a commercial lawyer. He or she can evaluate the legal risks related to your business and help you plan properly in order to avoid them.