Contract Disputes

Business Contract Disputes: The Art of Strategic Resolution - How Does A Business Consultant Help A Company Navigate And Resolve Contract Disputes Effectively?

Contract disputes come in various forms, such as partnership disagreements, investor conflicts, and issues within franchising agreements – which I've had my fair share of experience with. Then there are landlord disputes, vendor disagreements, and a host of other complications that business owners often find themselves entangled in, diverting their time and focus.

While I can't provide legal counsel, my strength lies in offering strategic recommendations to address these issues civilly before they escalate into legal battles. This approach involves tactics like negotiation, compromise suggestions, and even buyout recommendations, depending on the circumstances.

In today's world, no one wants to end up in court, especially with the current backlog. Even if a judgment is obtained, I've seen cases where it leads to little or no actual resolution. As one judge put it, "There are judgments that just sit in a drawer because there's so many of them after COVID."

In my experience, collaborating with a seasoned advisor often proves to be a cost-effective way to avoid exorbitant legal bills when dealing with contract disputes in a business. Even if you eventually decide to bring in an attorney, you'll have already established a strong foundation, eliminating the need to pay them just to get a complete view of the situation.

In fact, I'm currently dealing with this with one of my clients now who is in a dispute with an operator. Their agreement was based on a handshake deal, and now he's discontent because as their business has grown, he hasn't reaped any benefits beyond the basic use of his space. Currently, we're strategizing on how to approach the situation and prepare a well-structured request.

It’s also important to note that, if you do end up involving an attorney, you'll want to have all your historical data ready to go: emails from the beginning of the dispute, a record of how long the issue has persisted, and specific events or dates that are relevant to the resolution. When you work with someone who excels in strategic thinking – which is my forte – you're already well-prepared, whether the issue is resolved amicably or requires legal intervention.

Don’t Take My Word For It! Keep Reading To Learn More About How We’ve Helped Clients Like You…

I’ve had countless interactions with my clients where Big Catch has made the difference between an ideal outcome and total disaster. Some of the experiences that stick out to me the most are the stories like these.

The Business Partner Who Almost Bombshelled The Business

I once had a client who stumbled upon an incredible space with very attractive rent terms. The only catch was they had a business partner who was also named on the lease – and this partnership arrangement had been in place before they sought out my services.

Upon reviewing their file, I asked about this relationship, especially as it concerned renting the facility, and my client explained that the partner would share the rent with them. This was an immediate red flag to me. I shared my concerns with my client, advising them to reconsider, but they proceeded without listening to me.

About six months later, the partner decided to exit the business and refused to contribute to the rent, even though their name was on the lease. This presented a tough situation, especially considering that my clients had only just opened their business maybe a month earlier due to construction delays they experienced. After finally passing the final plan check and opening their doors, the partner dropped this bombshell.

So, we dove into the lease and contract agreement with the other party. I always advise my clients that if they decide to take action, consulting with an attorney is essential. We went through several iterations of the proposed agreement, and just before they were about to hire an attorney, the landlord accepted my client's offer, providing a much better outcome than a long, drawn-out legal battle.

Franchise Entrepreneur Guided To Freedom From Debt

Another client of mine had plans to expand their business into a franchise. They had received initial startup funds from an investor for their first physical store five years prior. Now, the client wanted to move forward with the franchise on their own, and we needed to assess the loose agreement with the investor.

Luckily, we found a way for the client to repay the investor while establishing a separate entity for the franchise, completely separate from the original company. This solution resolved the debt and allowed my client to proceed without any future issues.

From Murky Partnership Agreements To Total Clarity

In another case, one of my clients was involved in a manufacturing venture with partners who joined the business roughly three years ago. Their collective success had skyrocketed, but it emerged that my client not only provided them with manufacturing space but also shared proprietary information concerning product formulas and manufacturing processes. Surprisingly, all they received in return was the fee for facility usage. As the entity continued to flourish and sell products on prominent platforms, my recommended strategy was for my client to consult with contract attorneys.

In the consultations, my client was able to meticulously document and investigate every aspect from day one to uncover the actual agreement compared to the initial plan. Fortunately, my client had been diligent in his record keeping, which made it possible to engage in negotiations rather than start an immediate legal dispute. Today, as they are working through the negotiation phase, it appears that legal action might not be necessary at all – and that the outcome will more than likely be in his favor.

Loan Debt Disaster Turned Into A 50% Settlement

Around two years following the onset of the COVID-19 pandemic, a company found itself grappling with a substantial loan debt. Delving into court records, we unearthed that this loan had changed hands, having been acquired by another entity at a much-reduced cost. We took the initiative to reach out to the new loan holder and skillfully negotiated a debt settlement, ultimately securing an agreement for fifty cents on the dollar. A successful resolution indeed!

Half-Million-Dollar Rent Dispute Slashed To A Fraction

I often find myself dealing with landlord negotiations, but one of the most remarkable cases I've encountered was a lawsuit related to unpaid rent during the COVID-19 pandemic. The landlord asserted a staggering claim of nearly half a million dollars in damages. However, upon a meticulous review of the client's lease agreement and its stipulated terms, it became evident that legal representation was crucial.

The client retained an attorney, engaged in arbitration, and ultimately reached a settlement for just under $100,000. This settlement covered approximately six months of unpaid rent, a significantly more favorable outcome compared to the initial claim of half a million dollars. For more information on Dealing With Contract Disputes In A Business, an initial consultation is your next best step.