Understanding Contract Disputes in WA
Contracts are a major aspect of business. When one or more parties create a plan and ensure that everyone follows their end of the bargain, they may create a contract.
This gives everyone involved peace of mind, knowing that the contract will be upheld. However, contract disputes are not uncommon in the business world, causing difficulties to quickly erupt.
What are the most common contracts, and why are they important?
There are a lot of different contracts that are created and agreed upon in the business world, such as:
- Employment agreements
- Bill of sale
- Promissory note
- Nondisclosure agreement
- Licensing contracts
- Sale contracts
- Warranties
- Lease agreements
- Construction contracts
- Franchise agreements
- Corporate agreements
- Security agreements
- Privacy agreements
- Loan agreements
- Acquisition agreements
Contracts are important in business and employment because they are usually legally binding once they have been read, agreed to, and signed. If one or more parties want to ensure that their rules, plans, or wishes are honored, they can create and implement a contract.
What are the common causes of contract disputes?
A contract dispute is when one or more parties do not agree with the terms, conditions, rules, or obligations in the contract. Most contract disputes are minor; however, they can balloon into serious legal matters. The following are a few common causes of contract disputes:
Poorly written contracts: One of the most common reasons for contract disputes is poor writing. Contracts must be clear, straightforward, and easy to understand.
Failing to comply with laws: If a contract does not comply with Seattle or Washington laws, one or more parties may realize it and dispute it. Contacts that violate the law cannot be enforced.
Miscommunication: All parties involved in the contract must explain everything in detail. If there are any miscommunications, individuals may not understand what is expected of them, leading to a contract dispute or even a breach of contract.
Confusion and misinterpretation: It is very easy for parties involved in a contract to become confused or misinterpret it. If there is any room for one’s own interpretation, someone may misconstrue the information, which can cause a significant dispute.
Lack of trust: When a party is not transparent or does something to break the trust, it can cause contract disputes. Other parties involved may feel that bad intentions are behind the contract or that they will be tricked or swindled in some way.
Failing to follow or meet the demands of the contract: If one party believes that another party is failing to meet the demands or is not upholding their end of the contract, this could cause a contract dispute. For example, if the contract states that one party must provide certain services or items by a certain date or time, and that does not happen, this could cause a contract dispute. This scenario becomes a breach if it is determined that no misinterpretations, communication issues, or confusion are involved.
Mediation vs arbitration for a contract dispute
There are two different methods that your Seattle business lawyer may suggest if you have a contract dispute. These are called mediation and arbitration. Your lawyer can listen to your side of the story, learn the facts of your case, and determine whether mediation or arbitration is better for you. To help you better understand both mediation and arbitration, we will briefly explain each of these methods below.
- Mediation: When you go through mediation, a mediator will sit down with each disputing party and help them resolve the issues at hand. The mediator is a neutral party who does not pick any sides; they simply go over the facts of the case and help everyone reach a fair resolution. A lawyer can help you get ready and prepare for mediation so that you are not nervous and know exactly what to expect throughout this process. They can also help you present your case and evidence and advise on the type of resolution you should seek.
- Arbitration: When it comes to arbitration, the arbitrator listens to each side of the dispute and decides based on what they heard, the facts and circumstances involved, and what they think is fair. A lawyer can represent you during arbitration, increasing your chances of a fair and accurate outcome. Lawyers can also help you gather evidence, find witnesses to support your statements, and present your case to the arbitrator. Arbitration may sound similar to trial, but it is typically more informal than trial. However, the results are often binding, and there are specific procedures you must follow, so having a well-versed lawyer who can handle this situation on your side is important.
How our Seattle business lawyers can help you with contract disputes
Our Seattle business lawyers can help you with contract disputes in various ways, such as:
- Dissecting and determining the facts of the contract
- Investigating the contract and the dispute
- Communicating with the other parties involved
- Reviewing and creating a new and fair contract
- Determining whether there is a breach of contract
- Negotiating or resolving the dispute
- Collecting evidence
- Finding witnesses
- Preparing you for mediation or arbitration
- Representing you
- Fighting for the compensation you deserve
What should I do if I believe my contract has been breached?
If you believe that your contract has been breached by your employer, employee, or even another business owner or business partner, you should reach out to a Seattle breach of contract attorney as quickly as possible. You should also begin collecting any documents, records, or information that is relevant to the contract and the potential breach. These may be emails, text messages, phone calls, audio recordings, or letters received in the mail.
Even if you are unsure whether your contract has been breached, but you feel like something is off, you should start discussing your situation and circumstances with an attorney. Although these conflicts may be a hassle, contract disputes occur frequently in the business industry. If you find yourself dealing with a difficult contract dispute, it is crucial to obtain legal assistance before things get out of hand. At Smith McBroom, we have over two decades of experience helping our clients with these issues, and we are more than glad to do the same for you. Please call our office or submit our contact form to schedule a case evaluation to discuss with our business attorneys in Tukwila today.