Business law, sometimes referred to as corporate law, deals with the rights, relations, and conduct of companies, organizations, and the people that run them. Business litigation deals with the disputes and law suits on these matters. For those who are not well-versed with legal matters, business litigation can seem vague. And for those who want to start their own business, having some basic knowledge of this could be worth the read. Here are some common business litigation issues.
Business litigation can involve situations between business partners, vendors, suppliers, competitors, employees, or other parties that cannot be resolve on their own. One common example is breach of contract. This occurs when either side of a contract fails to meet the terms of their agreement. Often, a major cause of disputes that lead to breach of contract claims are contracts with ambiguous terms. Not having a clear agreement can cause disputes with major consequences.
Deceptive trade practices, often referred to as fraud, is litigated when an individual or a company is deceived as part of a transaction or deal. This can often result from the misrepresentation by a party in whatever product or service they are trying to sell. Fraud, which often used in a very general sense, has a very specific legal meaning. Not all misrepresentation claims rise to the level of fraud.
Employment disputes are also common cases. These claims can occur when an employee is terminated, believes they are being treated unfairly, alleges discrimination or harassment, or in other circumstances.
When individuals or businesses join together as partners, each partner generally has certain obligations and responsibilities they must execute with prudence and care. Disputes may arise from partners failing to uphold their end of the deal or acting out of self-interest. These disputes are often convoluted and expensive.
For business litigation, the best cure is always an ounce of prevention – having detailed agreements at the beginning of a relationship is a great way to prevent business litigation..
A passionate practitioner of business law, Attorney David Baer is also the COO and General Counsel for O’Shaughnessy Holding Company. To read more topics on business law, check out this blog.
