During the day-to-day activities of a business, it is normal for issues to arise. Occasionally, an issue may arise that must be disputed within a court of law. If you require legal assistance managing a commercial business issue, you should consult with an experienced Columbia commercial litigation lawyer today.
At the Heyman Law Firm, we are dedicated to providing you with the legal representation that you deserve. Our business attorneys possess decades of combined legal experience, and we would be honored to represent you. To schedule a confidential case evaluation, contact the Heyman Law Firm at (410) 305-9287, or contact us online.
Common Commercial Litigation Issues
There is a multitude of commercial litigation issues that could arise when operating a business. While it is true that some issues can be resolved swiftly, there are other issues that may require more attention. The following is a list of common commercial issues that could lead to commercial litigation.
Contract Disputes
Building relationships and drafting contracts with consumers and other businesses are some of the most important parts of operating a successful business. A contract dispute can occur under several different circumstances. One possibility is that one party to a contract could fail to perform the contract as agreed. This action would cause a breach of contract issue.
A breach of contract is one problem that can trigger a contract dispute. There are multiple elements of a contract that must be established for a contract to be valid:
- The offer that outlines the required performance by each party
- The acceptance of the terms of the contract
- A valid consideration for the contract, typically a goods for money exchange in commercial businesses
- And a mutual assent between the parties
Once a valid contract is created, the parties must perform in accordance with the promises made in the contract. When a party fails to perform as promised, they are in breach of the contract. A breach of contract could cause a number of problems for a business. For example, if a business needed a certain type of product and their supplier failed to deliver, this could cause the business to incur additional expenses procuring the items they need to operate their business.
The damages available for a breach of contract claim can depend on a number of circumstances. For example, the court could look at the money lost due to a breach or the value of the goods or services named in the contract.
Violation of Employment Agreement
Many companies possess intellectual properties that are an integral part of how they operate their business. As a result, it is necessary for a company to protect its intellectual property from being exposed to their competitors. One way to accomplish this goal for a business owner is to mandate that all employees sign a non-disclosure agreement (NDA) or a similar agreement.
An NDA prevents an employee from taking trade secrets from a former company to share with a new employer that is engaged in the same field as their previous employer. For intellectual property that may not be eligible for registration (i.e. a client list) an NDA is a valuable tool to prevent a former employee from sharing aspects of your business with others.
There are other types of employment agreements that could benefit an employer. For example, if you wish to prevent a high-ranking employee from competing directly against you, you may ask that the employee sign a non-compete agreement. This agreement would prevent a former employee from working with your competitors within a certain mile radius for a certain length of time, such as six months.
It is important to note that non-compete agreements must be written diligently to ensure that they are not unenforceable. A non-compete agreement that is too restrictive on a former employee could be invalidated by a court. For example, if an employee cannot work for a competitor within 100 miles, this could force the employer to travel across state lines to find suitable employment.
Partnership Disputes
When a dispute arises between partners of a business, it would be wise to address the operating agreement for answers. An operating agreement is typically drafted at the inception of a business to outline how the business will be conducted. For example, an operating agreement may address how liabilities for debt will be determined between the partners.
If an operating agreement was not drafted or it does not address the issue in question, there may be a need to seek litigation. Partnership disputes can arise for a number of reasons. It is important to resolve these issues as soon as possible to avoid a negative impact on your business.
Work with an Experienced Columbia Litigation Attorney You Can Trust
If your business requires legal assistance to litigate a commercial issue, you should contact an experienced Columbia commercial litigation attorney today. The legal team at the Heyman Law Firm understands the difficulty of operating a business, and we are here to alleviate that process. To schedule a confidential evaluation of your case, contact the Heyman Law Firm at (410) 305-9287.