7 Common Business Contract Disputes

contract dispute

The Bucks County PA attorneys at Olen Law Office can provide the guidance you need to start your business and ensure your company remains compliant with all state and federal laws. What happens, though, when you enter a contractual agreement with another person or business that gets broken in the end? A Bucks County business lawyer can help you understand the details about contracts and litigation related to breached agreements. Read on to learn about seven of the most common business contract disputes. 

Commercial Lease Objections

You agreed to lease a space to house your business. Now, the landlord wants to seemingly end the contract abruptly and demand the remaining amount due on the lease upfront. 

It is not uncommon for a lessee to endure the heartache of an unlawful detainer while using space from a real estate company. Under such circumstances, a lessor can demand up to 12 months of rent paid in full if the lessee breaches the contract and exits the building. 

There are instances in which the language associated with a lease is unclear. The lessee may not understand, for instance, that he, or she, is liable for up to 12 months of rent regardless of whether the space is used for the entire duration of the agreement. 

A Bucks County business attorney can help you understand the stipulations of a proposed agreement before you sign, so you can lower your risk of being caught up in an unlawful detainer dispute. 

Non-Compete Agreements 

A non-compete agreement stipulates that an individual who accepts employment from a company may not work for the competition for a set amount of months should he, or she, choose to leave the company. This type of agreement is often broken as many individuals are so excited about a new job that they fail to read the agreement in full. 

A company may aggressively hold a former employee to a non-compete agreement when it appears the former worker is sharing inside information that places the competition ahead in the field. The severity of breaking such an agreement may even warrant the attention of a Bucks County business litigation attorney. 

Sales of Goods Contracts

Sales of Goods contracts are governed by the Uniform Commercial Code. This type of agreement involves the merchant and buyer. 

In a sales of goods contract, the merchant agrees to send the product purchased by the buyer as represented. The deal is broken if the merchant sends the wrong product or fails to provide the good altogether. 

A buyer technically has the right to take legal action against a merchant who does not deliver on the product. Many consumers, however, choose to rectify the situation without going to court. 

Non-Disclosure Agreements (NDAs)

Non-disclosure agreements are common in the film industry. Many studios employ actors and other staff to work on a project that is months, or even years, from making a public debut. Non-disclosure agreements are brought into the picture to ensure that no one leaks pertinent information that would ruin the big reveal. 

Violating an NDA is serious and could lead to the loss of work along with legal backlash. Individuals presented with these types of contracts should seek legal counsel from a Bucks County business litigation lawyer before signing the agreement. 

There are instances in which a company will allow you to share some information about an upcoming project or product. You need a lawyer to help you understand what would qualify as breaching the agreement, though. 

Consumer Contract Disputes

Consumer contract disputes are the most common agreements breached, yet they require no signature. These types of contracts are better known as warranties. 

In a consumer contract dispute, the company that offers a product guarantees the good will work. They support their stance of quality with a warranty that either guarantees a refund or repair of defective items. The agreement is breached when the manufacturer fails to uphold the warranty. 

Class action suits have come about because of consumer contract disputes. You may need to seek legal counsel if the repercussions of a failed product and warranty are significant. 

Company Contracts

A company contract is an agreement made between two companies. These bonds are typically solidified after a law firm in Bucks County PA reviews the terms of the agreement. 

Companies that breach a contract with other businesses may be liable for financial damages. Such liability is especially possible if the language in the contract is clear. 

General Material Breach

A material breach occurs when a party refuses to follow all terms as outlined in a contract. The breach is so severe that a Bucks County business attorney may question why an agreement was created from the start. 

The consequences of breaking every stipulation in a contract can be severe. Some offenses lead to millions in losses. 

Contract disputes are not uncommon in business. Calling a Bucks County business lawyer before you sign or create a written agreement is the best way to lower the risk of significant controversy.