Austin TX Business Law Blog

Monday, February 20, 2023

Common Business Disputes

Owning and operating a business is taxing. There is always something to do and there are always things on that seemingly never ending to-do list that keeping getting pushed to the next day or the day after and so on and so forth. This means that even when everything is going smoothly for your business, there never seems to be enough time. Throw a business dispute in there and it becomes the proverbial wrench in the operation. The fact is most businesses can be seriously impacted by a dispute arising. This includes disputes within the company and external disputes with other companies or clients. Let’s take a look at some of the most common business disputes that can arise.

Common Business Disputes

There are a number of common business disputes that can arise over the course of a business’s dealings. Employment disputes are quite common and can include everything from discrimination claims to salary or payment disagreements. Parental leave disputes and wrongful termination claims are also fairly common and can cause a real headache for all involved.

Another common type of business dispute that is internal, as in it takes place within the business itself, is a shareholder dispute. In fact, partnership disputes may just be the most common type of business dispute out there. When those in leadership capacities find themselves to be at odds over things like the direction or operation of the business, things can quickly grow to a larger dispute. Partnership disputes can be about:

  • Changes in leadership
  • Opinions as to company direction and goals
  • Business strategy
  • Hiring decisions
  • Company finances
  • Partner compensation
  • Employee compensation
  • Business succession planning

Disputes can arise between partners for a wide range of reason. This can happen even when the partners usually work well together and communicate well with each other. When disputes arise, the partnership agreement can come into play in an invaluable role. With a well drafted, comprehensive partnership agreement, answers can be found to commonly disputed issues among partners. It can also dictate the way that such disputes should be resolved.

Disputes between businesses are also common. Businesses work together for a number of reasons, but often the central reason is simply that the business relationship helps strengthen each business. Now, working together may strengthen each business in a different way, but the partnership serves each business in one way or another. Unfortunately, however, relationships between businesses can go south, so to speak. When a relationship between businesses becomes more hurtful than helpful, disagreements arise fairly quick. Contract disputes, in particular, are common business to business disputes. Contracts are legally binding agreements and when one party breaches or perceives that the other party may have breached the agreement, things can quickly escalate from there. There may also be disputes over what the contract terms really require of a party. This can be particularly common when the contract terms are ambiguous, unclear, or just generally vague on important matters.

Business Law Attorney

The Kumar Law Firm is committed to helping your business strengthen itself against involvement in business disputes. We can also give you the tools you need to weather such disputes should they arise. Contact us today.

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