What Are Some Reasons That Business To Business Contract Disputes Arise?
The main reason for a business contract dispute would be different expectations by the parties. One party believes that they are contracting to do one thing; the other party believes they are contracting to do another thing. There is a failure to understand, from the beginning, what is required or expected under the terms of the contract. Most of the time, the costs are set out, unless there are some hidden costs that one side did not understand. Generally, it is either a misunderstanding of the expectations or an unreasonable expectation under the contract.
Can Either Party Opt Out Or Get Out Of A Contract Once It’s Signed?
Many times, whether a contract can be voided depends on the wording of the contract. If a company or business has a contract with another business or an individual and there is a disagreement, then it is a breach of contract dispute. If the contract provides mechanisms for a party to opt out, then you can simply use that “opt out” provision. For instance, some contracts provide that upon written notice, either party can withdraw from the contract with 30 days’ notice to the other party with no penalty or cost. Other contracts will provide that if one side wants to opt out and the other side has put up money, expertise, time, or energy, the party can get out upon payment of a certain amount of liquidated damages.
Many times, if there are no “opt out” provisions and the contract calls for strict performance, then a court will interpret the contract. If there is no provision to opt out and the side who opted out cannot show a breach of contract and a reason to no longer perform under the contract, then the judge will order specific performance of the contract.
What Is The Statute Of Limitations For Bringing A Contractual Claim?
Generally speaking, a contractual claim must be brought within a 3-year period. Sometimes, a contract will provide for a shorter period and, many times, that has been enforceable. However, a lot of contracts are employment contracts. In employment contracts, there is a one-year statute of limitations.
What Happens If A Mistake Was Made When The Contract Was Created? Does That Automatically Declare It Invalid?
A party who claims a mistake must raise that mistake in a timely manner. If the parties can agree to rewrite the contract so that the reasonable expectations are met by all parties, then they can do that. If the other side takes the position that there is no mistake, then they could seek specific performance under the contract. I try to tell people to put their anger aside and see if they can resolve the issue, especially if it is advantageous to both parties to be in the contract.
For more information on Business To Business Contract Disputes, an initial consultation is your next best step. Get the information and legal answers you are seeking by calling (601) 852-1696 today.
Call Now For A Case Evaluation