Many contractual disputes can slow down your business deal. Depending on the contract, you may have issues getting others to sign non-compete agreements or nondisclosure agreements.
It’s reasonable to have negotiations between parties, but the following issues are more likely to cause slowdowns and delays in your business deal that take longer than usual to resolve. Planning for these issues may help you avoid them.
The first kind of contractual element that could lead to a dispute is the use of a non-compete agreement. Employees and third parties often don’t want to sign a non-compete because doing so limits their opportunity to look for additional work. Non-compete agreements are particularly contentious when they restrict people from working in the same field following termination or leaving a job.
Company contracts with third parties
You’ll have contracts with third parties such as a website hosting company or a leasing agreement to use a room in your building when you run your business. If you are trying to complete a business deal and have to breach one of those contracts, you could find that the entire process slows down as you try to resolve the dispute.
A third issue that can come up is with nondisclosure agreements. An NDA may help you protect your company’s ideas and business plans, but you need to be clear about what it means to disclose information. What constitutes disclosure? Is it discussing a project or idea, naming the company as an employer or something else entirely? Not being clear about this may lead to bitter disputes that make it more challenging to complete a deal.
Don’t let business disputes hinder deals
Business deals come in all shapes and sizes, and so do business contracts. If a contract is breached, it can create a dispute that hinders the relationship between your business and partners. It’s important to put steps into place to resolve business disputes so that you can make sure to handle them quickly and effectively when they do arise.