3 Common Causes of Business Disputes

Business Disputes

Business disputes can be challenging and stressful. Not only can they disrupt daily operations, but for many owners, they strain relationships that once felt like an unbreakable bond and create enough distractions to steer everyone’s focus away from long-term business goals. By being aware of these risks, you can prevent many business disputes from happening in the first place.

With that in mind, our team at Nelson Law Group, PC, has compiled three common business disputes we see in our practice.

Be Wary of These 3 Common Business Disputes

  1. Contract issues — Misunderstandings or unmet obligations within contracts are common causes of business disputes. Clear, well-documented agreements are essential to avoid confusion. Furthermore, it is important to take the time to define terms thoroughly. Doing so can prevent many unforeseen issues down the road.
  2. Owner disagreements — Conflicts can arise quickly when owners have differing visions, responsibilities, or expectations around job duties, compensation, work environment, business strategy, or other operational issues. Open communication and a comprehensive agreement (before the dispute is best) are crucial to aligning interests among owners and minimizing friction. It is essential to think of the worst-case scenario when drafting agreements governing partner relationships.
  3. Intellectual property conflicts — Your intellectual property (IP) is a valuable asset that needs protection. Disputes can occur when rights are unclear or infringements take place. Proper registration and vigilant enforcement of your IP rights are crucial to safeguarding your company’s creative and innovative efforts.

The First Step in Any Dispute Is To Hire an Attorney

In a perfect world, the company agreement that governs the operation of the business is reviewed and improved before a dispute arises within the company. Regardless, the first step when you face litigation is hiring a business litigation attorney. For starters, Texas law considers a business a separate legal entity. Therefore, an individual whose business is the party with the claim or being sued cannot represent their business in a lawsuit as that could be considered an unauthorized practice of law. Furthermore, even if you could represent yourself in business disputes, doing so increases the odds that you might unintentionally place yourself at a disadvantage, and finding yourself in a more costly situation is significantly higher than if you had someone trained to protect your rights.

When business disputes arise, having a legal team with your best interests in mind is important. If you have any questions or need legal assistance, our team is here to support you every step of the way. Don’t hesitate to reach out.

Call Nelson Law Group Today!!

Cases that seem simple or straightforward rarely are, and you need a lawyer in your corner who can offer you an honest assessment that will help you make the best choices for your case. The Nelson Law Group brings nearly two decades of experience to every case. Give our knowledgeable staff here at Nelson Law Group, PC, a call if you have any further questions regarding this or any other issue. Our staff is always available.

Give us a call today! For more information about Brett A. Nelson, click here.

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