What Happens if My Business Gets Into a Contract Dispute With a Vendor?
What Is a Vendor Contract Dispute?
Contract disputes with vendors are a common occurrence in any business. Such conflicts arise when vendor agreement breaches occur, or contract terms are disagreed upon. A vendor contract dispute can quickly arise if a material breach occurs, such as price changes, an error in one of the clauses, a delay in delivery time, the vendor fails to perform, or perhaps leaks confidential information about the contract to your competitors.
Regardless of the reason for the dispute, you would need to resolve it one way or the other as soon as the dispute arises. A delay could be detrimental to your business and affect your company's reputation.
Therefore, it is crucial for you to be aware of your options and the ideal course of action for your business - whether to renegotiate, terminate the contract, or seek court intervention.
What Are the Types of Vendor Contract Disputes?
Vendor contract disputes often stem from a material breach or perceived breach of contract. Thus, most businesses will attempt to seek redress for contract breaches like late delivery, poor performance standards, or leaked trade secrets.
Generally, these vendor disputes may be divided into three broad categories as follows:
Disagreements over the extent of contractual obligations and scope of work to be provided
Disagreements over the price of goods or services to be supplied
Disagreements or dissatisfaction with the quality of goods or services supplied
How Can I Resolve a Vendor Contract Dispute?
If you're faced with a vendor contract dispute, you could pursue the following options:
Negotiation or mediation: Resolving the dispute amicably without proceeding to court is possible through negotiation or mediation. This course of action might suit you if the vendor is cooperative or if you wish to preserve a long-standing relationship. At this point, you could renegotiate the terms of the contract in a mutually beneficial manner or perhaps even terminate the contract.
Trial in court: Alternatively, you could approach the court with the assistance of a knowledgeable business litigation attorney if you are not interested in negotiating or the settlement process becomes fruitless. However, this is a more expensive option that may include court fees aside from attorneys fees.
How Can a Lawyer Help With My Vendor Contract Dispute?
Trying to resolve a vendor contract dispute can prove challenging and unnecessarily time-consuming on your own. You might need to employ legal counsel to assist you with your case.
A business attorney can help you understand the contract, draft or respond to a demand letter, or file a lawsuit against the other party. Your attorney can help you gather the necessary paperwork and evidence to support your case.
A business transactions lawyer can also represent you in settlement discussions, help you negotiate the terms of an agreement, and help you prepare a suitable contract that protects you if the alternative dispute resolution process is successful.
Contact Schulten, Ward, Turner & Weiss, LLC for assistance with contract disputes such as vendor breaches. Call us immediately to discuss your options and decide on the right strategy for you.
How Can a Lawyer Help With My Vendor Contract Dispute?
Trying to resolve a vendor contract dispute can prove challenging and unnecessarily time-consuming on your own. You might need to employ legal counsel to assist you with your case.
A business attorney can help you understand the contract, draft or respond to a demand letter, or file a lawsuit against the other party. Your attorney can help you gather the necessary paperwork and evidence to support your case.
A business transactions lawyer can also represent you in settlement discussions, help you negotiate the terms of an agreement, and help you prepare a suitable contract that protects you if the alternative dispute resolution process is successful.
Contact Schulten, Ward, Turner & Weiss, LLC for assistance with contract disputes such as vendor breaches. Call us immediately to discuss your options and decide on the right strategy for you.
