How to avoid contract-related dispute ?
A legal dispute may arise in the preparation or execution of the contract. Resolving a legal dispute could affect your business because it takes a lot of time, effort and money. It is important to take steps to avoid disputes completely, or if they do arise, they can be resolved quickly
Be clear, be concise and easy to understand
Legal disputes in contracts occur because the contract is not clear, multi-interpretation or even not set certain things. This type of contract would cause differences in understanding and in perception among the parties who entered into the contract.
Therefore, the most important thing in avoiding legal disputes in commercial contracts is to arrange your contract in detail, clear and easily understood by the parties.
Review your draft contract before signing the contract
Once you and your business partner have drafted a contract, review your contract. Review again. Is the contract good enough for you?
Remember, when you have signed a contract, you will be bound by all rights and obligations under your contract.
Recognize your rights and obligations
When you review your draft contract, recognize your rights and obligations under the contract. Make sure you understand it. Violation of contractual obligations is an act of default and potentially causing a legal dispute.
Have good communication with your business partner
Once you have read and signed your contract, then the contract will start. For any reason, you or your business partner may want to amend your contract. In order to prevent disputes between you and your partner, it is important to establish good communication during the contract period.
Be organized
Keep copies of all your signed agreements and contracts in one place so they are easy to find.
Have a system to remind you of key dates and details included in the contract so you don’t breach any terms and conditions. Don’t file and forget as it could lead to a dispute down the track
Share the contract and/or training to your employees.
You should provide explanations and training (if necessary) to your staff regarding the execution of your contract so that your staff works according to the terms and conditions of the contract.
Use the services of legal consultants
Using a service of legal consultant does not mean decreasing the role of legal division in your company. The presence of legal consultant can provide incredible value for your business. They could assist you in drafting, reviewing, and understanding your contract as well as communicating with your business partner. They are a bunch of people who are expert in legal things.
When the legal dispute is unavoidable, you do not need to explain the dispute from the start since your legal consultant has learned the contract since the beginning. Your legal consultant could assist you in resolving the legal dispute that suits with your interest.