How Can I Avoid Business Disputes?

Businesses can find themselves in disputes with various parties. Common parties a business may have disputes with include customers/clients, suppliers/vendors, employees, investors/shareholders, contractors, tenants/landlords, and partners. Even businesses with the best management can sometimes find themselves in disputes with employees, suppliers, clients, and other parties. Resolving a business dispute can take a lot of time, effort, and money. This can adversely affect the running of a business. Fortunately, many business disputes can be avoided. It is crucial for business owners to take steps to avoid business disputes. In this article, we share seven tips to help you avoid business disputes.

1. Have a Written Agreement

In California, an oral business agreement may be enforceable. However, it is very easy for business disputes to occur in situations involving oral business agreements. It is best to have a written agreement that outlines all the terms. For example, before you supply or purchase any goods, enter into a written agreement with the buyer or seller. With a written agreement, you can ensure that parties have a place to refer to.

Additionally, as a business owner, you should ensure you develop written policies, contracts, and policies. For instance, ensure your employees have employment contracts detailing the terms of their employment. This can help prevent disputes between you and your employees.

2. Always Read Contracts Before Signing

After signing a contract, you are bound by its terms and conditions. Therefore, you should read contracts before signing them. Do not sign a contract if you have an issue with its terms or don’t understand some terms.

Before signing a contract, it may be wise to reach out to a business attorney and ask them for their professional advice.

3. Document Everything

One of the most effective ways of avoiding business disputes is by documenting everything. Ensure you document, among other items, contracts and agreements, proof of payment, calendars, loan documents, meeting minutes, and accounting data. Avoid off-the-record dealings or having crucial conversations off the record.

4. Practice Good Communication

Many disputes are caused by communication errors. Having good communication with your employees, customers/clients, suppliers, partners, and other parties can help prevent business disputes. For example, ensure your employees and customers/clients know how they can provide feedback if something is wrong and that you respond promptly to complaints.

5. Understand Your Legal Obligations

Running a business involves various legal obligations that you need to be aware of and comply with. Understanding your legal obligations and complying with them can help prevent business disputes. Some common legal obligations you have as a business owner include complying with employment laws, such as minimum wage and workers’ compensation laws, complying with tax obligations, ensuring contracts are legally enforceable, respecting the intellectual property of others, and complying with laws related to product safety, labeling, and advertising.

6. Train Your Employees

Training your workers on how to handle client or customer complaints can help prevent disputes between you and customers/clients.

7. Seek Help Early

Finally, to avoid business disputes, seek the help of a business lawyer as early as possible. Early legal counsel can contribute to dispute prevention in several ways. For example, an attorney can help with clear contract drafting, identifying potential issues, and compliance with employment laws.

Contact a Skilled San Jose Business Attorney

At SAC Attorneys LLP, our qualified Silicon Valley business attorneys are available to offer you the legal help you need. Contact us today to schedule a consultation.