It is common for all business sectors to face contract disputes. Contracts are drafted and signed to bind parties together for a period of time. However, one of the parties may want to deviate from the agreement which causes a breach of contract to take place.
According to a lawyer with experience in resolving business contract disputes in New Jersey, these agreements are legally binding. There are remedies when one party fails to deliver their contractual obligations. Let’s take a look at some well-known contracts and their most common disputes.
Company Contracts
Company contracts are the basis for all business transactions. Businesses are involved contractually with a proprietor in one way or another. The agreements between various parties are important so that the relationship can operate efficiently. Damages and losses may incur when a party decides to breach the agreement. If the terms and conditions of the contract are clear, then the party may be liable for damages.
Consumer Contract Disputes
Manufacturers promise to provide consumers with defect-free products in exchange for cash. A warranty is a promise made by the seller that they will meet certain conditions such as product quality and life span.
If a manufacturer or seller cannot honor it, the warranty is rendered useless. It can be frustrating as a consumer to receive a defective product. You as a consumer are entitled to return the product for a full refund.
Non-Disclosure Agreement (NDA)
An NDA establishes a confidential relationship between parties getting into a business. It is a legally binding agreement, put in place to protect sensitive information from leaking. You may want to protect your trade secrets, or any products that may be patent pending.
Through an NDA, an investor or potential buyer will have to keep your sensitive information confidential. Most disputes arise when a party is accused of leaking confidential information. In such cases, it is important to prove that the party committed the act intentionally.
Commercial Leases
It is an agreement for a business to rent a property such as an office space from a landlord. The term commercial means the party is renting the property for business purposes and not for housing. Most disputes arise due to failure to pay rent, repair, damage to the property, or other violations of terms.
General Material Breach
Material breach refers to a failure to perform the whole contract, rendering it broken. It is a serious violation that calls into question if the contract should have been formed in the first instance.
Conclusion
It is important to work with a commercial lawyer from the beginning to ensure a successful contract. An experienced lawyer will do their due diligence to make sure no stones are left unturned; this is to avoid any unnecessary disputes that may arise later.
A properly written contract that is clear for each party to understand is critical to avoid contract disputes. If you have done your part but the other party breached their end of the contract, then you should seek legal advice.
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