3 Ways to Avoid and Resolve Business Disputes

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As you run your business, chances are you may fall victim to business disagreements. It can either be a conflict with a partner or client, a sales negotiation, a dispute with a supplier, clash for territory, or a contractual problem. Whatever kind of dispute you encounter, it can lead to the loss of countless working hours, loss of thousands of dollars, and in worse cases, irreparable damage.

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Luckily, there are several precautions you can take if you want your business to run free of any disputes.

Put Everything in Writing

To prevent any party from falling back from their word, ensure that everything is put down in writing. From contractual agreements, minutes from all meetings and even phone conversations.

When you have every conversation down in writing, it can allow both the disputing parties to confirm that their understanding of the matter is in line with what they had previously discussed. It helps to prevent one party from placing unreasonable demands and ensures that they can correct any inconsistencies present before moving forward with the next step.

Promote Consistent Communication

One of the main causes of business disputes is miscommunication. It would be best if you encouraged the flow of information in your workplace. Raise any concerns you may have and offer constructive feedback that can help to solve the problem. Rather than speaking to just anyone about a problem, it is best to speak directly to the person that the issue involves.

By taking such measures, you can quickly de-escalate any issue that may arise at your workplace. Moreover, it opens your eyes to who not to work with going forward.

Clarify Everything before Moving Forward

Rather than choosing to interpret according to your understanding, you should ask for clarification until everything is easy to understand. Additionally, when it comes to contracts, ensure that all the terms and conditions are easy to understand.

Specify essential matters such as timeline and cost. It is imperative to ensure that everyone knows their roles, assignments, and expectations to ensure that your business runs without any hitch. When everything is clear, disagreements are less likely to occur.

While you may not necessarily avoid all business disputes, you need to have an effective strategy to mitigate them once they occur. Some steps you can take include:

  • Arbitration

The process of resolving your differences through arbitration is very similar to a standard trial in court. However, instead of a judge, both parties present their case to an arbitrator who revises their claims and arguments. The arbitrator provides them with a solution that benefits everyone. A business and commercial litigation attorney like Fleeson Gooing can help you through the process.

  • Mediation

If your dispute worsens, a mediator can help you resolve your differences. Deciding to involve a mediator is not an admission of guilt. Instead, it is to help both sides from presenting their opinions in a non-confrontational way. Moreover, a mediator ensures that emotions do not drive the discussion.

Summing up 

Business disputes have adverse effects on a business. It would be best if you took proactive measures to avoid these disputes. It would also help if you deal with business issues like a pro by resolving them as soon as they occur if you want to preserve your relationships and business position.

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