Disputes are an inevitable aspect of conducting business. From contractual disagreements to conflicts over intellectual property rights, commercial entities often find themselves embroiled in legal battles that can impede progress and drain resources. However, with the right approach and understanding of commercial dispute resolution, these conflicts can be efficiently managed and resolved, allowing businesses to focus on their core objectives.
Types of commercial dispute
A commercial dispute is a disagreement relating to commerce between two or more stakeholders.
Disputes can concern almost any interaction between business parties, and therefore range from the simple to the complex. Discover the different types of commercial dispute below:
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Contract disputes
It is a fundamental feature in commercial dealings, and a leading source of disputes. Disagreements can stem from contract breaches and misunderstandings, both of which can involve failure to meet the obligations outlined in the terms and conditions. Common contract disputes include not paying on time nor performing agreed duties.
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Intellectual property disputes
Intellectual property (IP) rights are vital to the ongoing success of many organizations in our increasingly technology-dependent business climate. As a result, disputes can arise over IP infringements regarding copyright, patent and trademark licenses, IP ownership, IP misuse and more.
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Business sale disputes
Disputes often occur during or after the purchase of a business, and usually relate to vague or deceptive contracts, unforeseen liabilities or failure to perform certain obligations under the transaction’s terms and conditions.
Best Methods for Commercial Dispute Resolution
When a commercial dispute occurs, rushing to issue court proceedings is not necessarily the best course of action, at least initially, as there are alternative measures that can often deliver a satisfactory solution for all parties:
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Arbitration
In arbitration, the parties in the dispute agree for an independent arbitrator to examine the details of the dispute before making a binding decision about an appropriate outcome. The process is consensual, neutral, and confidential, and the outcome can be easily enforced through the courts if necessary.
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Mediation
Mediation is a confidential process that can resolve commercial disputes between businesses or organizations. It involves the appointment of a mediator, who is an impartial third party, who helps those involved in the dispute to openly discuss the issues and, through negotiation, reach a mutually agreeable outcome.
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Conciliation
Like mediation, conciliation helps businesses in a dispute to agree a settlement through a process of negotiation, supported by a third-party expert (the conciliator) who remains impartial. During the process, the conciliator will ask the parties to propose a non-binding settlement.
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Litigation
If the parties in a commercial dispute cannot agree to a resolution through other means, litigation may be an appropriate course of action. This is when a dispute is progressed to a court where a Judge will consider both sides of the dispute before making a formal legal judgment, which must be abided by. Litigation can be expensive and lengthy, so it is vital to employ the support of commercial litigation solicitors rather than attempting to ‘go it alone’.
While the litigation process is underway, mediation or conciliation can also be attempted.
Commercial disputes can occur at any time and are often more prevalent following an economic downturn. Effective dispute resolution can require the significant investment of management time and cost.
“Consortio Law Firm” helps clients realize the value of their commercial disputes.
Our legal experts help you build an effective strategy which will take into account your resources, your approach to risk and the potential impact on your brand. We also can help to determine which commercial litigation cover is the correct litigation funding choice for you.
Contact an expert member of our team today to find out more about commercial dispute resolution methods, and that via the phone number 002 01028806061 or send us a WhatsApp or email Info@consortiolawfirm.com.
