Common Types of Business Contract Disputes and Potential Resolutions

 Posted on November 13, 2024 in Condominium & Homeowner Association Law

One of the main goals of a business contract is to protect your business, but every business owner is likely to face a commercial contract dispute at some point in the course of running their business. An experienced attorney can represent you in any type of Illinois business dispute that may arise, whether the contract is with a business partner, vendor, customer, or another business. Here are some types of common business contract disputes.

Common Contract Disputes

Breach of Contract

This is the most common type of contract dispute and among the most common business disputes. One party alleges that the other failed to fulfill one or more of the party’s contractual obligations. Contract breaches are not one size fits all so the potential remedies for a breach of contract dispute will depend on the type of breach. Some contract breaches concern material breaches to the contract that cause significant harm to a party, while others are minor breaches. A party can also anticipatorily breach an agreement, which means that they have made it clear either through words or actions that they intend to breach the agreement, even though they have not done so yet.

Tortious Interference with Contract Rights

Tortious interference occurs when a party who is not a signatory to the contract interferes with the rights of one or both parties to the agreement. Things like bribery, extortion, fraud, or deceit can give rise to a claim for tortious interference with contract rights, so long as the wrongful conduct causes a breach of contract.

Contract Interpretation

Many contract disputes arise out of differences in contract interpretation.  When a contract term is drafted in an ambiguous way, the parties may have different interpretations of their rights and obligations under the agreement, which can lead to contract disputes.

Contract Validity

Sometimes parties to a contract may claim that the contract or a term in the contract is invalid, often by claiming that there was fraud or misrepresentation.

Potential Contract Dispute Resolution

Negotiation and Mediation: When the dispute first arises, it is usually possible to negotiate a solution outside the courtroom. Mediation is a formal process in which to do so. Once parties to a contract reach a settlement agreement and sign it, mediation is legally binding on the parties. Other options include: 

• Litigation: When mediation does not work, the parties can go to court to resolve their contractual dispute.

• Arbitration: Often business contracts will contain a provision that says disputes must be resolved in arbitration. Arbitration is a formal alternative to mediation. It is faster and more predictable than litigation, and often less expensive, and it is also legally binding.

Contact Our Arlington Heights, IL Business Dispute Attorney

When your business faces a contract dispute, it is important to get experienced advice. A knowledgeable business dispute attorney can help your business navigate disputes, negotiate a solution outside the courtroom, or, when necessary, move forward to litigation. To learn more, contact our Cook Country, IL commercial contract dispute lawyers at Dickler, Kahn, Slowikowski & Zavell, Ltd.. Call 847-593-5595 today for a consultation to see how we can help you.