The Most Common Types of Contract Disputes
- March 22, 2021
While contract disputes might seem rare, they pop up in about every market segment. In a contract dispute, one of the involved parties may not be acting in good faith. They may also cause a breach of contract. Sometimes, this can lead to lawsuits, arbitrators, mediators, and ongoing contract negotiations.
That’s why it’s important to know some of the most common business disputes and how these can impact your contractual obligation.
Consumer contract disputes happen daily.
Any time a business owner sells a customer a product that comes with a warranty, it’s essentially a contract between the manufacturer and the consumer. When a consumer pays money for a product, the manufacturer promises that it will come without defect or any other hazards. Often, when a product doesn’t work as intended, a customer can return it for a full refund or a replacement as stated in terms of the warranty. When a manufacturer fails to uphold its end of that warranty, they’ve broken the implied contract. This type of business litigation is one of the most common. In fact, many class-action lawsuits fall under this category of business litigation in the United States.
This is also why plenty of federal agencies act as consumer regulators due to the manufacturer’s breach of fiduciary duty. These regulators operate in consumers’ interest and set qualifications for products and services sold to the public.
NDA disputes are more common than you’d think.
Non-disclosure agreements, or NDAs, often make headlines in response to major cases. However, these contract disputes happen outside of the federal government, too. Many executive agencies and corporations have employees sign NDAs to reduce the leakage of sensitive information. If an executive agency suspects an employee has leaked information or damaged the executive agency’s reputation, they can pursue legal action.
These are tricky cases that often favor the defense. Not only does the plaintiff have to provide specifics that prove an individual breached their agreement, but they also have to prove the defendant did so knowingly and willingly. However, there are cases where the employer or litigant can use supporting data to prove the employee acted in bad faith or committed a material breach of their agreement. In business litigation law, this is a more common type of business litigation. Many business litigation attorneys even specialize in NDA disputes.
Lease disputes are regular occurrences.
The specifics of a lease’s language can often cause disputes. These disagreements happen when a landlord needs to remedy issues with a tenant, lease clauses have been violated, or the tenant’s account isn’t paid on time. Often, a tenant must be given a reasonable time to remove any liability to prevent further legal issues. When it comes to business law, commercial lease disputes occur rather often. Sometimes, there are even counterclaims in these business litigation matters.
Lease disputes may also coincide with partnership disputes where business splits are concerned. The specifics of each case can vary greatly, from fiduciary breaches to lessee misunderstandings. This is one of the reasons that many landlords rely on lease templates. It helps prevent unclear language and can ward off any claimants.
Government disputes rely on the Contract Dispute Act.
The Contract Dispute Act helps streamline the resolution of any government claims and disputes. Since government disputes happen quite regularly, there are two different boards of contract appeals to handle cases within branches like the United States Postal Service and the Department of the Navy. Some of these legal disputes even end up in the United States Court of Federal Claims.
Since contract disputes happen with a surprising frequency, it’s good to know which ones are and aren’t common. It’s complex litigation that has a major impact on almost every industry.
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