How to Resolve a Business Dispute
- kpayne28
- Apr 2
- 4 min read
When a company has a disagreement with another business, matters need to be managed carefully. Whether it’s a supplier or a client, it’s always advisable to try and reach an amicable resolution when in dispute with another business. In this blog, we look at how to resolve a business dispute without damaging your business reputation.
When you have a commercial dispute with another business, things can quickly escalate, so one of the biggest priorities is damage limitation. If a company disagrees with another business about the terms or definitions of a contract, this can result in a time-consuming and costly process.
Common types of business disputes
There are different types of commercial disputes that can arise between two or more businesses:
Contractual dispute
Contractual disputes can occur when a supplier, contractor or customer does not agree to the terms set out in the contract or where there are errors. It can also include offer expectations, where the contract differs from a verbal or written agreement. Breach of contract is where one party has not fulfilled the obligations expected of them. It can also include where goods and services have not been provided in the way they have been listed on a contract.
Supplier or contractor dispute
When a supplier or contractor fails to deliver expected goods or services, for example, in terms of quantity, quality or timeliness, then a dispute can arise. As above, this can form the grounds of a contractual dispute, where the supplier is in breach of contract.
Client or customer dispute
When a client or customer fails to pay their invoice, this can result in a dispute. There could be a reasonable explanation for their failure to pay, so it is always worth discussing the matter first with the client. However, if they are refusing to pay your invoice, then you may need to seek legal advice.
Property or land dispute
When a business has planned works affecting a neighbouring business and a shared party wall, then the Party Wall etc. Act 1996 legislation will apply. The Act requires building owners to give at least 1 month’s notice before such works are due. The adjacent business has 14 days to provide a response from the date of the notice to avoid the matter becoming a dispute. Disagreements can also arise due to land boundaries, especially in relation to farmland, which can span hundreds and thousands of acres. When two farms disagree over a land boundary, this can lead to a dispute.
For more information on land boundary disputes, please see our blog How to Approach a Property Boundary Issue or speak to our solicitors.
Steps to resolve a business dispute
Below are some recommended steps of how to resolve a business dispute:
Start by trying to negotiate with the other party.
Consider whether the matter can be dealt with outside of the courtroom. Your aim should be to reach a satisfactory resolution, which could be a compromise or new terms and conditions. Negotiation can encourage open communication between two disagreeing parties. However, this method might not be suitable for every type of business dispute.
If negotiations fail, then you could consider mediation.
In this instance, a third party becomes a mediator between two disputing parties. This is a useful method that enables each party to share their concerns, while the mediator manages relations. However, this approach only works if both parties are willing to cooperate. Mediation is not legally binding unless a formal agreement is reached and signed by each party.
If mediation fails, then you could consider arbitration.
This approach involves a legally appointed arbitrator to help settle the dispute. They would examine the evidence, listen to arguments from both parties, and then make a decision. However, the decision could be binding or non-binding, and either party might not agree with the result.
If the parties remain unable to resolve matters, then court proceedings may be necessary.
We will be able to advise you on your prospects of success and begin or defend proceedings as required.
Seek advice from a dispute resolution solicitor.
In many cases, it’s wise to involve a qualified dispute resolution solicitors from the start. They will negotiate with the other party to find a resolution and they may also offer mediation services. Dispute resolution solicitors will carefully consider any related terms and conditions, and they have the expertise to draw up new contracts. They can also represent your company in court.
Business dispute solicitors
Before you attempt to resolve a business dispute, ask an experienced dispute resolution solicitor for advice. As every commercial dispute is different, they can manage the whole process on your behalf. The actions needed will depend on the nature of your dispute, and this could involve gathering evidence to support your case.
At Salusbury Harding & Barlow, our dispute resolution team regularly advises companies on how to navigate business disagreements. We provide sympathetic, expert advice and our aim is to resolve your business dispute in a timely manner to avoid additional costs and court hearings. Our team will help you maintain your business reputation, including salvaging any affected supplier or customer relationships. We will listen closely as you explain the cause of the dispute, check any contractual terms and definitions, and advise you on the likely outcome.
If you need advice about a business dispute, please get in touch. Email: andrewwhitfield@shbsolicitors.co.uk to arrange a face-to-face or telephone appointment
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