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The Most Common Contract Disputes

Contract disputes within a business are more common than you might think. Typically, one party causes a breach of contract deviating from the terms set forth in the agreement. A contract is considered valid when both parties understand these terms and willingly accept them. If an agreement is not mutual, it can be challenged in court. Today, we will look at the most common contract disputes to uncover what business owners should be wary of.

Types of Contract Breaches

To get started, it would be beneficial to go over the types of contract breaches that may come up in a contract dispute. Types of contract breaches include a material breach and a minor breach. A material breach is where one party fails to perform the duties or tasks asked of him/her in the contract. It is a serious and substantial matter that renders the contract irreparable. In contrast, a minor breach, also called a partial breach, is when a party fails to meet a minor condition of the contract. Although the breach may have been minor, the other party may still sue for any damages caused by this failure.

Contract Disputes Businesses May Face

Commercial Leases

At the heart of most commercial lease disputes is a contract issue between the business owner renting the space and the building owners wanting to get paid every month. The language used in a commercial lease contract can be complicated and confusing. Therefore, it is beneficial to speak with a lawyer before agreeing to any terms.

Non-Compete Agreements

Non-compete agreements are contractual agreements that an employee signs stating that they will not compete with their employer’s business for a certain number of years. Under Florida law, these agreements are enforceable if supported by a legitimate business interest. A legitimate business interest may include but is not limited to the following:

  • Trade secrets
  • Confidential business information
  • Relationships with prospective or existing customers or clients
  • Product information, sales tactics, client information, client data

Non-Disclosure Agreements (NDAs)

An NDA is a confidential agreement in which two parties agree not to disclose confidential and/or sensitive information. Companies utilize NDAs to ensure their intellectual property will not be stolen by other businesses. Evidence will be necessary to prove an individual accused of breaching an NDA did so knowingly and willingly.

Consumer Contract Disputes

This contract dispute is one of the most common ones. There is a particular relationship that exists between a manufacturer and a consumer. Essentially, when a manufacturer sells a product to a consumer, they are promising that their product is not defective or hazardous. If they fail to honor that warranty, the manufacturer has breached consumer trust and could be sued.

Company Contracts

Businesses around the world rely on company contracts to function. A breach of a company contract could include but is not limited to the following:

  • Failure to perform the contracted service within the allotted time frame
  • Failure to perform the service expected
  • Failure to pay as agreed

General Material Breach

A material breach is an outright refusal to adhere to the terms set forth in a contract.

Consult with a Lawyer at Our Firm for Assistance

The best way to avoid a contract dispute is to ensure your contract is written in a way that is legally valid, enforceable, and easy to understand. The language used will also be important with clear and concise verbiage that would make it difficult for one to accidentally breach. To ensure all this, it is important to hire an experienced lawyer. Whether you need assistance writing a contract or enforcing one, our firm offers comprehensive legal services, including pre-litigation, business litigation, and other forms of contract disputes.

If you need assistance with your contract dispute and require an experienced attorney, contact our firm online today or give us a call at (352) 310-8169.