Avoiding disputes

BUSINESS INFORMATION

Establishing a written agreement or contract, thoroughly understanding its terms before signing, and maintaining clear communication can help prevent business disputes.

Even the best managed businesses can sometimes find themselves in dispute with customers, suppliers, partners or employees.

Resolving such issues can be time-consuming and disruptive, potentially affecting business operations. Therefore, it is wise to take proactive measures to either avoid disputes entirely or resolve them swiftly, minimizing costs and preserving business relationships.

Tips to help you avoid disputes

Document Details in Writing

Many disputes arise due to the absence of clear agreements, contracts, policies, or procedures. To prevent this, ensure a written agreement or contract is in place before providing or purchasing goods or services. Include all terms, such as payment details, and ensure all parties sign the document. If modifications are needed, document these changes in writing and obtain consent from all involved parties. This could range from a simple email confirmation to a more formal amendment.

Develop business policies and procedures for employees and contractors to prevent future conflicts. Employees should also have a formal employment contract. Consulting a legal professional when drafting contracts is highly recommended.

Review Contracts Before Signing

By signing a contract, you are typically bound by its terms and conditions. Always read and fully understand the contract before signing. If any terms are unclear, seek legal or professional advice. Avoid relying solely on the other party’s interpretation of the contract’s meaning or implications.

Foster Strong Communication and Relationships

Maintaining open communication and positive relationships with customers and suppliers can help prevent disputes. Ensure they know how to provide feedback if issues arise, and address complaints promptly. If your business is at fault, be transparent with customers. Ignoring problems will only exacerbate the situation.

Stay Organized

Keep all signed agreements and contracts in a centralized, easily accessible location. Implement a system to track key dates and details within contracts to avoid breaching terms and conditions. Avoid filing documents and forgetting about them, as this could lead to disputes later.

Train your staff

Train employees to handle customer complaints or negative feedback professionally and appropriately. Develop a documented complaint-handling process for staff to follow when needed. Ensure all team members understand the extent of their authority to enter into contracts on behalf of the business.

Understand Legal Obligations

Operating a business comes with numerous legal responsibilities. Familiarize yourself with these obligations and ensure compliance to avoid disputes and unnecessary expenses.

Seek help early

Do not wait for issues to escalate. Consult your lawyer, accountant, or business advisor for guidance and feedback. Establishing robust systems early on can significantly reduce the likelihood of disputes.