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How can we keep our business dispute out of the courtroom? (PART 2)

Last week we started discussing some ways that a business can keep their dispute out of the courtroom. Beyond communication and having a general appreciation for the other side’s perspective, there are some very specific safeguards a business can set up in order to protect itself.

First, a business needs to look at its dispute history and see how and when disputes were handled successfully. There’s a lot that can be learned from a company’s past dealings. It’s also important to recognize in which areas of business disputes are likely. These are the areas that may need extra forethought when it comes to writing out contracts.

A business can set up avoidance provisions when writing a contract. These may include mandatory mediation provisions, cure provisions or provisions that require partnering. A company could also use waiver language, disclaimer language or release language in order to protect itself. These are all options that a business owner needs to consider when working with clients or business partners. If an owner is starting off new, he or she may not know the possible protections they could use under business law. Although some business owners may feel hesitant hiring an attorney when drafting business contracts, if a weakly written contract leads to a dispute, they may end up having to work with an attorney after the fact in order to resolve the problem. Sometimes being proactive and setting up legal safeguards at the beginning of the relationship can go a long way in protecting a business and its employees.

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