3 types of contract disputes

Contract disputes are unfortunately all too common in the business world. With contracts drafted each and every day for business matters both large and small, the chance for human error is always present.

When contract disputes arise, lawsuits can result. Here are three common types of contract disputes, with information about how they may arise and how to resolve them.

1. Residential and commercial lease and rental agreements 

Leases are some of the most frequent types of contracts because people need a place to live and business owners need a place to do business, and often the cost of buying a place outright is prohibitive. A tenant may dispute a contract in order to break the lease early. Sometimes, rental contracts include clauses that tenants do not abide by, or landlords seek to evict a tenant without following proper contractual obligations. 

2. Employment contract disputes

Employment contracts frequently have clauses and provisions that can lead to a dispute when breached. For example, one way an employee may violate a non-compete agreement in the contract is if he or she begins working for a competitor. The terms of the contract will specify what the employee is prohibited from doing in terms of competitors and non-disclosure of company trade secrets.

3. Service contracts

Businesses often have multiple service contracts in place for various aspects of services they need performed for their company. Individuals may also run into contract disputes when a service they contracted for is not provided as promised in the terms of the contract. When one party does not meet the terms of the contract, a dispute can result.

Contract disputes are not pleasant, but they are a regular part of doing business, and most businesses will run into a contract dispute sooner or later. When this happens, the owner should consult with a qualified business law attorney for assistance in resolving the dispute.

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