October 4, 2022

6 Ways To Avoid Conflict In Business Agreements

Contracts are usually drafted in such a way as to prevent breaches, minimize risks, and allocate liability in the event of a conflict. One of the main problems that companies face when creating and enforcing contracts is the problem of contract conflicts. Unfortunately, even the most well-written contracts often succumb to problems that lead to protracted contract disputes. Sometimes these violations occur due to inadequate work of one of the parties, general misunderstandings, or different interpretations of certain provisions of the contract.

Of course, there are many other reasons why a conflict may arise in a business agreement. It is wise for the contract management team to understand the nature of the parties involved and to incorporate a smooth approach to resolving conflicts amicably. To avoid that, consider the following tips:

 

1. Establish Clear Communication

Most of the contractual conflicts arises from ambiguities in communication. When the right information does not reach the right recipient at the right time, it tends to create a rift between the parties. Transparency and unambiguity are very important, especially with the terms and conditions of the contract document. Vague terms and uncertain deadlines can cause confusion and conflict between the involved parties.

The best practice, in this case, would be to engage a professional contract content writer or agile contract management software where contractual content can be compiled and reviewed by the contract manager.

2. Guaranteeing your contract is correctly drafted

Knowing the importance of a well-written contract is one thing. Actually, putting one together is quite another.

It's easy to fall into the trap of believing that what you're trying to achieve in a commercial or individual context is simple and doesn't require expert drafting or expertise.

But any experienced lawyer can tell you that is not the case. Professionals can not only give you peace of mind by having a well-written contract, but they can also use their experience to secure better terms for you. Contracts are essential to an entire industry namely the legal profession for a reason. They are not easy to compose, and each word can and does mean something: meanings that have been shaped and fashioned over centuries of legal development.

Professional input is vital not only to stress-test your contract wording for the vagueness but also to extract optimized value from the planned arrangement; both of which are ingredients for a successful venture or relationship.

 

3. Timely Discussion

Conflicts occur when verbal discussions are absent. Over time, the expectations and pressures on businesses and business owners will change, thus changing responsibilities and potentially causing friction. Imagine that one of the parties does not fulfill its contractual requirements consistently and you do not receive any updated information or communication regarding the same. This can cause conflict between partners and potentially lead to legal consequences.

However, with proper notice and detailed verbal discussion, conflicts can be effectively resolved. Having reoccurring monthly meetings with your business partner to discuss changes and any potential disagreements will help you both stay on top of things and prevent bitterness from growing. This can be done effectively during a lunch break, over coffee, or any time you both agree to put other work aside and focus on the dispute.

4. Concentrate on the Solution, Not the Problem

When discussing a dispute with your business partner, try to keep your conversation solution-focused rather than problem-focused. Your goal should not be to win the argument but to escape the dispute with an appropriate solution in the best interest of the business. Be sure to actively listen to the other side of the argument and show your partner the same respect that you would like when providing feedback.

These days, most companies value flexible, result-oriented contracts over overly detailed and cumbersome contractual agreements. Minor issues are less likely to develop into major disputes when the contractual relationship focuses on the end result.

5. Automate as Appropriate

One of the quickest and easiest ways to prevent contract conflict is by automating the contract management process. Using an online system to host and manage your contract portfolio, you can quickly and efficiently measure and evaluate contract deadlines, key milestones, and progress.

Although the use of technology creates its own challenges, human error is much more likely to trigger a contract dispute.

 

6. Include clear mechanisms for resolving disagreements

Disagreements happen. They are a part of life.

A description of how these conflicts will be resolved is a necessary part of the contract, which highlights the difference that professional involvement makes.

Including dispute resolution, governing law, and jurisdiction clauses explaining to both the parties how and where to seek resolution when disputes arise.

 

Conflicts are a given, but they're also a fact of life, you can't lose vision of the larger goal: to resolve differences as efficiently and amicably as possible so that both you and your partner may keep running a successful and expanding business. These tips for resolving conflict with your business partner will help you work together and succeed while doing it. If you have done your part and are sure of it, you can rest easy. And if and when something does go wrong, you can rest assured that the law will be on your side.

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5 min read

6 Ways To Avoid Conflict In Business Agreements

Published on
Oct 4, 2022
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Contracts are usually drafted in such a way as to prevent breaches, minimize risks, and allocate liability in the event of a conflict. One of the main problems that companies face when creating and enforcing contracts is the problem of contract conflicts. Unfortunately, even the most well-written contracts often succumb to problems that lead to protracted contract disputes. Sometimes these violations occur due to inadequate work of one of the parties, general misunderstandings, or different interpretations of certain provisions of the contract.

Of course, there are many other reasons why a conflict may arise in a business agreement. It is wise for the contract management team to understand the nature of the parties involved and to incorporate a smooth approach to resolving conflicts amicably. To avoid that, consider the following tips:

 

1. Establish Clear Communication

Most of the contractual conflicts arises from ambiguities in communication. When the right information does not reach the right recipient at the right time, it tends to create a rift between the parties. Transparency and unambiguity are very important, especially with the terms and conditions of the contract document. Vague terms and uncertain deadlines can cause confusion and conflict between the involved parties.

The best practice, in this case, would be to engage a professional contract content writer or agile contract management software where contractual content can be compiled and reviewed by the contract manager.

2. Guaranteeing your contract is correctly drafted

Knowing the importance of a well-written contract is one thing. Actually, putting one together is quite another.

It's easy to fall into the trap of believing that what you're trying to achieve in a commercial or individual context is simple and doesn't require expert drafting or expertise.

But any experienced lawyer can tell you that is not the case. Professionals can not only give you peace of mind by having a well-written contract, but they can also use their experience to secure better terms for you. Contracts are essential to an entire industry namely the legal profession for a reason. They are not easy to compose, and each word can and does mean something: meanings that have been shaped and fashioned over centuries of legal development.

Professional input is vital not only to stress-test your contract wording for the vagueness but also to extract optimized value from the planned arrangement; both of which are ingredients for a successful venture or relationship.

 

3. Timely Discussion

Conflicts occur when verbal discussions are absent. Over time, the expectations and pressures on businesses and business owners will change, thus changing responsibilities and potentially causing friction. Imagine that one of the parties does not fulfill its contractual requirements consistently and you do not receive any updated information or communication regarding the same. This can cause conflict between partners and potentially lead to legal consequences.

However, with proper notice and detailed verbal discussion, conflicts can be effectively resolved. Having reoccurring monthly meetings with your business partner to discuss changes and any potential disagreements will help you both stay on top of things and prevent bitterness from growing. This can be done effectively during a lunch break, over coffee, or any time you both agree to put other work aside and focus on the dispute.

4. Concentrate on the Solution, Not the Problem

When discussing a dispute with your business partner, try to keep your conversation solution-focused rather than problem-focused. Your goal should not be to win the argument but to escape the dispute with an appropriate solution in the best interest of the business. Be sure to actively listen to the other side of the argument and show your partner the same respect that you would like when providing feedback.

These days, most companies value flexible, result-oriented contracts over overly detailed and cumbersome contractual agreements. Minor issues are less likely to develop into major disputes when the contractual relationship focuses on the end result.

5. Automate as Appropriate

One of the quickest and easiest ways to prevent contract conflict is by automating the contract management process. Using an online system to host and manage your contract portfolio, you can quickly and efficiently measure and evaluate contract deadlines, key milestones, and progress.

Although the use of technology creates its own challenges, human error is much more likely to trigger a contract dispute.

 

6. Include clear mechanisms for resolving disagreements

Disagreements happen. They are a part of life.

A description of how these conflicts will be resolved is a necessary part of the contract, which highlights the difference that professional involvement makes.

Including dispute resolution, governing law, and jurisdiction clauses explaining to both the parties how and where to seek resolution when disputes arise.

 

Conflicts are a given, but they're also a fact of life, you can't lose vision of the larger goal: to resolve differences as efficiently and amicably as possible so that both you and your partner may keep running a successful and expanding business. These tips for resolving conflict with your business partner will help you work together and succeed while doing it. If you have done your part and are sure of it, you can rest easy. And if and when something does go wrong, you can rest assured that the law will be on your side.

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