Commercial Contract Disputes
Contracts are essential in the world of business, conveying expectations and safeguarding all involved parties. However, when a contract is ambiguous or a term has been breached, resolution can be a complex and expensive process.
Commercial Contract Dispute Resolution
In an ideal world, a contract is something that is thorough, clear, protects all parties’ best interests and that all parties were happy with when they agreed to it. When written thoroughly, with both parties in mind, a contract safeguards transactions to make sure that everyone is on the same page regarding the agreement. However, contract disputes can arise for a number of reasons, as we list below. When this happens, it can be time-consuming, costly, and can interrupt the tenancy, or business it was supporting.
Contract disputes can have many causes, but the main causes include:
- A lack of clarity, where there are gaps or unspoken assumptions within the terms.
- Verbal or informal contracts. A contract isn’t always a written and signed document: a contract can also be a verbal agreement or can be implied through informal writing such as texts or emails. In these cases, some parties may view the conversation as more binding than others.
- Contract breaches, and disputes over whether certain actions count as a breach.
Resolving such disputes in a smooth, timely and inexpensive way means it is important to make the right choices from the start of the disagreement. This is why it’s important to seek legal advice as early into the process as you can.
At Hanne & Co, our Commercial Dispute Resolution team are familiar with a range of Contract Disputes. We will work with you to protect your interests and make sure your point of view is well represented, whilst aiming towards a swift resolution. Ideally, we will work with you to achieve resolution outside of litigation, saving you the costs and stresses of going to court. These alternative routes to resolution include:
- Negotiation – helping both parties reach a resolution amongst themselves
- Mediation – providing a neutral third party as a go-between for negotiation
- Arbitration – an elected and trusted third party, other than a court judge, decides the verdict of the case, with both parties agreeing to adhere to this verdict
- Adjudication – similar to arbitration, specific to the construction industry
Lastly, if it seems as though litigation is necessary, our legal team can prepare you for the process and instruct Counsel for you.
How can we help?
At Hanne & Co we combine the strong technical understanding of contract law with the pragmatism to advise you in accordance with your specific matter. We act both for claimants and defendants, businesses and individuals on breaches of contract, joint venture disputes, misrepresentation claims and more.
We encourage you to contact us at the outset of a dispute to prevent costs escalating. We will usually be able to advise you on the contractual position, discuss your intentions and work out an initial plan to try and resolve the dispute quickly if possible. Should the contractual dispute result in court proceedings, we will continue to represent you and provide you with commercial and pragmatic advice throughout the proceedings.
Contact Hanne & Co
Get legal advice from acclaimed commercial sector solicitors. Contact Hanne & Co today to book a consultation and start the first steps towards resolving your commercial contract dispute.
Contract Disputes – FAQs
Broadly speaking, a contract dispute relates to a disagreement over a contract. A contract dispute claim can arise in a number of circumstances, which we have discussed in more detail below.
Perhaps the most common type of contract claim is a claim for an unpaid debt. For example, Party A agrees to supply Party B with goods for an agreed price. Party A duly supplies the goods, in compliance with the terms of the contract. Party B then fails to pay some, or all of the agreed sum for the goods. Here, Party A may have a claim for an unpaid debt/ breach of contract.
A contract dispute may also arise in circumstances where there is an issue with the way in which the contract was entered into. For example, owing to misrepresentation or fraud on the part of one of the contracting parties, or possibly a mistake.
A dispute may also arise where terms of the contract are potentially illegal/unenforceable, or an event has occurred which has rendered performance of the contract impossible. In legal terms, the latter situation is referred to as frustration. There may also be disagreements in relation to a purported variation of the contract and whether such a variation was made validly.
Before commencing a contract dispute claim, you would first need to send a letter of claim to the opposing party. In brief, this letter sets out a background to the dispute, the basis of your claim and the action(s) required. For example, payment of a sum of money, or to carry out their contractual obligations.
Whilst beyond the scope of these FAQs, you will also need to comply with the relevant pre-action protocol, dependant on the nature of the contractual dispute. In essence, pre-action protocols set out the steps and procedures that must be followed, prior to commencing a contract dispute claim.
Should no response be received to the letter of claim, or it is not possible to reach a settlement with the opposing party, a claim would need to be commenced. In order to start your claim, you will need to draft a claim form and also, particulars of claim. Once these have been drafted, you will need to file them at court. The court the claim is sent to will depend on the value and nature of the dispute.
There are a number of different methods by which you can settle a contractual dispute, without the need to commence court proceedings, or if proceedings have been commenced, without the need for a final hearing. Attempting to settle a matter outside of court is referred to as Alternative Dispute Resolution (‘ADR’). ADR encompasses a number of different means of settling disputes, such as mediation, arbitration, expert determination, amongst others.
It is possible to keep a contractual dispute out of court, by pursuing Alternative Dispute Resolution. In addition to keeping the dispute out of court, it is also possible to keep the terms of any settlement agreement confidential.
Our services include:
Recent successes:
Defending an Italian based business in a contract dispute worth almost a million pounds, Abeer made an application to obtain Security for Costs against the Claimant, in order to protect his client’s costs position. Abeer’s application was heard at the Royal Courts of Justice and was successful, with Security for Costs in the sum of £100,000.00 awarded against the Claimant.
Acting for the Claimant in a breach of contract action relating to the sale of a business in South London, Abeer settled a dispute lasting two and a half years. After having to issue court proceedings on behalf of his client and following negotiation, Abeer secured his client the full initial sum sought and a portion of his client’s legal fees in the overall final settlement.
For any enquiries, please call +44 20 7228 0017 or contact our team via the form below.
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