Businesses of all sizes use contracts. While the process might seem routine, any party entering into a contract should remain mindful of the potential for disputes to arise.
Contract disputes typically occur when one party fails to fulfill their end of the agreement in the eyes of the others involved. Several potential causes for this exist, with the following being some of the most common.
1. Miscommunication
Miscommunication frequently happens with poorly thought-out contracts or those that use confusing wording. Overly technical language or phrasing that people might interpret in multiple ways leads to different understandings of what the contract entails.
2. Vague clauses
Any vagueness surrounding the responsibilities of those involved in a contract creates confusion that may lead to disputes. Unclear time frames, expectations of quality and so on easily lead to frustration when one party believes the other has failed in meeting the expectations of the contract. Getting specific during the contract creation process helps avoid this.
3. Negligence or fraud
Even more complicated than situations caused by confusion or misunderstanding, sometimes contract disputes arise due to negligence or even purposeful fraud by one party. Examples of this include one party purposefully leaving out important details of the situation or lying about how much of the contract they can fulfill.
While those entering into a contract often fulfill their end of the agreement without issue, business owners benefit from working to avoid disputes before they happen. While some conflicts may happen due to unfortunate circumstances, those entering into the contract can mindfully avoid issues such as confusing wording or unclear expectations.
