Contract Disputes and How They Hurt Businesses

Businesses are built on contracts, making them the foundation upon which much of our society and economy depend. When contract disputes arise, they can threaten not only your business but also your livelihood.

Hare, Wynn, Newell & Newton has handled business litigation matters for over a century. Our attorneys have the expertise to help you with any type of contract dispute. We will examine every aspect of the dispute, including the surrounding circumstances, and work to protect your interests.

Business to Business Contract Disputes

Businesses are interconnected, and contracts are drafted for relationships between companies. As an example, consider marketing companies that provide advertising for businesses, website hosting, and suppliers and retailers.

If the language in a contract is clear, and one business breaches the agreement, they can be held liable for losses the other party suffers.

If your company isn’t fairly compensated for the services you provide or if a company you depend on fails to fulfill its obligations, it can have serious repercussions. On the other side of the coin, a company stands to lose a lot if they are sued for breaching a contract with another business.

If you are involved in a business-to-business contract dispute, don’t wait to get in touch with our attorneys.

Partnership Disputes

Partnership disputes are a common form of business litigation. There are many causes behind these disputes. A partner feels they are not receiving fair compensation or that they are excluded from management. Partners may disagree about what’s best for the business. Sometimes, a group may believe that one partner isn’t adequately performing their duties.

These sorts of leadership conflicts interfere with the running of a business and can even cause it to fail. Disputes can involve shareholders in a corporation, partners in a partnership, or members in a limited liability company (LLC).

It’s advisable to work with a business lawyer to draft a partnership agreement or an operating agreement to prevent litigation. A partnership agreement outlines how a business will operate, the rights and responsibilities of each partner, and how decisions about important business matters will be made. A limited liability company’s (LLC) operating agreement is similar.

If a contract dispute arises, you should contact our experienced business litigation attorneys at Hare, Wynn, Newell, & Newton.

Employment Matters

Common contract disputes over employment matters include:

  • Wrongful Termination
  • Wage Disputes
  • Claims of Harassment and Discrimination
  • Severance Agreements

Employment disputes often involve government employment and labor agencies. Not only are these disputes disruptive for business operations, but they can also damage your company’s reputation.

Non-Solicitation

A non-solicitation agreement is an agreement not to take customers or employees away from a business. It generally includes restrictions against:

  • Selling to the company’s customers and prospective customers
  • Recruiting anyone associated with the company to change their employment or business relationship with the company
  • Employing or soliciting or attempting to employ or solicit anyone who was an employee of the company within a certain time of their employment

Many companies require top-level executives and key managers to sign this type of agreement. Someone who buys a business may also require the seller to sign a non-solicitation agreement.

To be enforceable, a non-solicitation clause in a contract needs to involve “sufficient consideration.” This means the party gives a promise not to solicit in return for something of equal value. Usually, the signer receives money. The amount should be relatively equal to what they are giving up by not soliciting.

Non-Competition

A non-compete agreement is a legal agreement or clause in a contract that forbids employees from competing with the employer after they leave the business. It also prohibits employees from sharing proprietary information or company secrets.

Most non-competes set a length of time when an employee can’t work for a competitor. Contract terms may outline the geographic location and market covered by the non-compete agreement. Employees, contractors, and consultants may be required to sign a non-competition agreement.

Some state jurisdictions don’t enforce non-compete agreements. Most hold that a non-compete can’t be too egregious in terms of the time limit or geographic scope and that it should not meaningfully restrict a workers’ ability to find employment.

A non-compete agreement needs to be carefully drafted, so it will not be overly broad and unenforceable.

Contact Hare Wynn Today for Help With Any Contract Disputes

For more than 130 years, our business attorneys at Hare, Wynn, Newell, & Newton have successfully litigated, settled, and tried numerous contract disputes. Regardless of how complex or difficult your situation may be, our proven trial lawyers are here to help.

We can obtain the necessary information for a case without causing undue interruption to your day-to-day business operations. Our attorneys have extensive experience in contract litigation, both in state and federal courts, as well as a deep understanding of contract construction and the interpretation applied by the courts.

Contact us today at 855-965-1688 or use our online contact form to schedule a free consultation today.

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