Read the Fine Print to Avoid Business Contract Disputes
In 2014, Microsoft sued Samsung for $6.9 million over the latter’s purchase of Nokia, asking a federal court to decide that the purchase was not a breach of contract with Samsung. In turn, Samsung was withholding payments for the use of Microsoft technology. The suit was settled in 2015, although the terms of the contract were not disclosed.
Businesses—even the most powerful companies—often find themselves in business contract disputes, which most often come down to a failure to properly read the fine print. An attorney experienced in business contract disputes is the best asset when it comes to resolving such issues satisfactorily.
Common Business Contract Disputes
There are some very common business contracts that can lead to division between two parties, including:
- Commercial leases. Leases can either be too complex, or not complex enough, leading to issues between business owners who are renting space and building owners who are paid rent by said business owners. Commonly, because it can take many months to find a new business to take over a lease once a renter leaves, a business that is evicted for failing to pay rent could be asked to pay up to a year of rent in response to that eviction. The contract they signed, however, may not make clear how many months would be payable in the event of a breach of contract.
- Non-compete agreements. Certain industries put non-compete agreements into place when hiring an employee, so that after the employee leaves the company, they cannot work for the company’s competition or in the same industry for a certain number of years.
- Nondisclosure agreements. Nondisclosure agreements, or NDAs, are used to protect sensitive information being shared from one party to another. A dispute can arise if the person who signed the agreement leaked information or is accused of doing so.
- Consumer contract disputes. Among the most common contract disputes, when a person purchases a product, that purchase is made with a degree of expectation. If that product is defective or in some other way not what the consumer expected, the contract is broken.
- General material contract breaches. When one party fails to follow the rules outlined in a contract, it can be seen as a deliberate violation of the contract. General material breaches can cost millions.
- Sale of goods contracts. When goods are purchased, if the buyer receives the wrong product, the product fails to arrive, or products are not as described, it is considered a breach of contract under the Uniform Commercial Code. These types of disputes are most common in wholesale and liquidated merchandise transactions.
Are You in Search of an Attorney Specializing in Business Contract Disputes?
Contact the law office of Rowena Nelson, LLC. She and her team of skilled attorneys can handle business contract disputes and can be reached via email at [email protected] or by calling (301)-358-3271 for a consultation.
Located in Upper Marlboro, Maryland, Rowena N. Nelson’s offices serve the entire state of Maryland.