Generally speaking, most small business owners do not start a business venture looking for a lawsuit. However, regardless of your intentions, business disputes are quite common, and if not resolved quickly, can pose a serious threat to the continued vitality of an enterprise.

Most Common Business Disputes

Business disputes can range from the seemingly trivial to the extreme, resulting in the dissolution of the business. Often, the involve a partner or shareholder, or a relationship with a third party, such as a supplier, marketing firm, or even a government body. There are four types of business disputes that California businesses commonly face. Read on to learn more.

1. Partnership Dispute

Partnership disputes are the most common type of business dispute. Not surprisingly, disagreements between business partners are often very disruptive to the day-to-day operations of the business and can cause the business to fail. In our legal experience, one of the easiest ways to avoid partnership disputes is through a well-written partnership agreement. Even partners who start off on the same page can end up disagreeing about issues relating to finances, hiring and firing practices, profit distribution, and more.

2. Employment Disputes

Employee disputes in California usually involve employee claims of discrimination, harassment, wage and hour violations, unfair termination, and sick and/or maternity leave. A properly drafted employment agreement written by an experienced business attorney can act as a preventative measure against these time consuming and costly claims.

3. Business to Business Disputes

In a perfect world, all business to business interactions are covered by a formal written agreement. Unfortunately, that is not always the case. Indeed, many of the seemingly simple arrangements are undertaken without a formal contract covering performance. When one party fails to perform, a lawsuit is often the only recourse.

4. Breach of Contract Disputes

In California, a breach of contract generally involves financial obligations or monetary reimbursement. When there is a violation of any of the terms of a contract, a lawsuit is often filed to force compliance with the terms of the agreement or to seek monetary reimbursement or compensation for losses.

Before Starting a Business

If you are considering starting a new business, or joining an existing venture, protect your interests with written contracts that are reviewed and / or drafted by experienced business attorneys. For more information on how to handle a dispute within your business, or to discuss drafting any type of business contract, contact the skilled California business attorneys at Dennis Law Group today.