In the contractual relationship, disputes occur which are unintended by the participants. In developed countries, clients are always consulted by lawyers to identify potential disputes. At the same time, providing legal advice and support, accompanying enterprises in resolving disputes in all stages of contract negotiation, signing and implementation.
1. What is a contract dispute?
Contractual disputes are understood as conflicts, disagreements and conflicts between the parties on the performance or non-fulfillment of rights and obligations in the contract.
Contract dispute must contain all of the following elements:
There is a contract between the parties: The contract is concluded in many different forms such as documents and forms of equivalent documents, oral contracts or behavioral contracts. Therefore, it is necessary to determine whether a contractual relationship is formed or not.
There is a breach of an obligation or a breach of a party’s contractual obligations.
There is disagreement between the parties about the breach or dealing with its consequences.
It should be noted, contractual disputes arise from the breach. However, not all contract violations lead to disputes.
2. Characteristics of contract disputes
The parties have the highest right in deciding the settlement of disputes (Except for the contractual relations affecting the interests of the State)
Contractual disputes are always associated with the interests of the parties to the dispute
The principle of contract dispute resolution is voluntary equality and agreement.
3. Resolving contract disputes
Contractual disputes may be resolved by the following methods:
Negotiation is the process or behavior in which two parties exchange and agree on common interests and disagreement features and come to an agreement. Bargaining without the appearance of a third party. However, if the lawyer is involved as a bargaining agent, or advising or advising, the negotiation is more effective and easier to come to the most favorable agreement.
Mediation is also a process for parties to end a conflict. Mediation is different from negotiating with third party intervention. A mediator is the person who settles the conflict between the parties.
– Court: is a judicial agency of the State with a judicial function. Dispute resolution in Court will be cost-saving but time-consuming. Judgments of the Court may be appealed or protested against.
– Commercial arbitration: This is a mode of dispute resolution only in the field of business and commerce. The advantage of this method is quick and effective. However, the costs are higher and the verdict is final.
Disputes and dispute resolution are natural and indispensable issues of any economy. Therefore, businesses need to identify and anticipate possible disputes. When there is a dispute, the dispute resolution lawyer will help businesses offer the most reasonable, effective and optimal solutions.