When you’re putting together a contract with a new contractor, construction team or other entity, it’s a good idea to talk about how you’ll handle disagreements. If you don’t, you may later find that you’re dealing with contract disputes that are difficult to overcome.
Choosing to include a clause in your contract to state how you’ll handle disagreements is a good idea. Though you may not want to talk about the possibility of a serious disagreement, knowing how to handle one is important.
What is a good clause to include in a new contract?
One is a dispute-resolution clause. In the case that the contract is broken or violated, this simple clause may require you to keep meeting your obligations until a third party investigates. It can also require you to participate in arbitration, mediation or alternative dispute resolution before you move forward with a lawsuit.
What do you do if a dispute does arise?
When you have a contract that already discusses how to handle a dispute, then it is easier to handle one when it happens. You should reach out to your attorney to begin the process of dispute resolution.
In some cases, you and the other party may be able to easily resolve your conflict. In others, the breach may be significant enough that you have to go to mediation or through arbitration. Fortunately, these clauses do help prevent most cases from going to court, which saves you time and money.
Our website has more on breach of contract disputes and what you may be able to do to resolve a situation with the least amount of disruption. Please continue exploring or contact our office directly for more information.