Contract disputes are not uncommon. They can arise in any profession, including teaching, sales, or the NBA to name a few examples. Disputes occur when one party breaks the terms of the agreement after the document has been signed by both parties.
Once a contract is broken, the parties involved may end up in court if they cannot come to terms on their own.
Types of contract disputes
Here are some of the most common types of contracts and the disputes that can occur:
- Sales of goods between a merchant and a supplier: When products that were purchased are not delivered or are damaged, disputes can occur. This type of contract is simple to dispute when goods that are promised are not delivered.
- Unpaid rents: Commercial leases usually involve a dispute over unpaid rent and can lead to the renter being served an eviction notice.
- Violations of non-disclosure agreements: These are created to prevent important or sensitive information from being shared with the public. Disputes arise when the information ends up being leaked after the document has been signed.
- Warranty violations: Consumer contracts are in play when a company offers a warranty on its product. For example, if a consumer purchases a television and it doesn’t work, they can have it fixed or replaced according to the terms of the warranty. Disputes arise when the company will not honor the warranty.
- General material breaches: These occur when one party decides not to honor a contract that they signed. This can lead to litigation that costs millions of dollars and create ill will between the parties.
The damage that can occur when a contract is broken can be significant. Reputations are on the line and in business, no one wants to work with someone who doesn’t honor their obligations. That’s why it is important to thoroughly review a contract and understand the terms before you sign on the dotted line.