Participating in the world of business can be extremely fulfilling—and equally challenging. Whether you have started your own business or purchased a pre-existing one, you are probably enjoying the benefits of being your own boss, getting to know your customer base, and working hard to please them. Business ownership can be very exciting—to say the least—and it is easy to get caught up in performing the continual list of daily duties. In the beginning, and especially while your business is thriving and moving full steam ahead, the last thing you probably want to consider is a conflict with anyone. You may be on great terms with all your employees, vendors, and partners. As time passes though, any seasoned business person will tell you that issues are bound to arise.
Although none of us wants to look ahead and imagine legal trouble in our future, it is crucial to be prepared for such a thing. You could experience an issue with an employee who may have left the company and is not adhering to a non-disclosure agreement, a vendor who is not keeping up their end of the bargain, someone threatening your intellectual property rights, or a problem stemming from a close business partnership. The scenarios are endless when you consider how many different types of businesses and agreements there are in existence; however, the goal is to make sure that you and your business are protected. Because of this, the dispute resolution clause is very important.
The basic elements of any dispute resolution clause should include:
- How disputes will be presented to the other parties
- What type of negotiations (litigation, arbitration, mediation) will be used to settle a dispute
- Where the agreed upon type of resolution will take place; for example, which county, courthouse, or venue for arbitration or mediation
- Who will pay attorney’s fees, should that be an issue
Careful consideration to how a dispute will be handled—long before one occurs—is a good way to save time and money, and may in the end even be responsible for saving a partnership. Do you have questions about drawing up a contract and including such a clause, or are you concerned about a current business dispute? If so, contact Attorney Shane Coons. Our law office represents clients involved in a wide range of businesses and legal issues, and we would be glad to review your case and help you explore your options.
Call now at 949-333-0900 or email us at Shane.Coons@seclawoffices.com.