We know that the community in Essex thrives from the work of local business owners, but too often they run the risk of falling foul of commercial disputes.

While it might sometimes seem like commercial disputes are inevitable, there are steps that can be taken to minimise the impact they have on you so that you can get back to doing what is actually important.

We want to help you learn the warning signs so that you can stand a chance of protecting your position and potentially the business relationship.

What are the warning signs of commercial disputes?

While most business owners might feel like they are blindsided by commercial disputes, there do tend to be clear signs of problems that are too often ignored.

The most obvious one is a change in the way that payments are handled, most commonly with delays creeping in.

This could be an indication that someone is in financial hardship and these problems may impact the wider working relationship.

Similarly, if the tone or behaviour changes for the worse, then this could be a precursor to further problems.

If the person you are dealing with becomes cold or unresponsive, it may mean that they no longer trust you or are preparing for something that could cause more tension.

There are also instances where one party may begin to interpret contractual terms in a way other than that which has been previously agreed this could be a sign that they are no longer satisfied with the ongoing arrangement.

A general reluctance to meet obligations, such as being late with deliveries, lowering the quality of services provided, or giving frequent excuses, could all suggest deeper problems.

How can you prevent the escalation of commercial disputes?

Knowing the warning signs allows you to take action early, but it is important to know what steps you should take.

In an ideal situation, you should be able to talk through any issues you are having in your professional relationship.

It might be that some of the warning signs are caused by personal issues that will not negatively impact your business in the long run.

We would strongly advise that you keep detailed records of all meetings and correspondence that you have when trying to work through an issue.

This will provide a valuable defence should the matter need to be escalated further.

What are the options for dispute resolution?

If you are unable to sort out a commercial dispute before it escalates, then you may need to consider formal resolution methods.

Ideally, you will have included a dispute resolution clause in the contract to allow for a more expedient resolution.

Regardless, mediation is often an ideal strategy as this can avoid further conflict and legal proceedings.

Where you desire a more binding decision, arbitration is a good option as it is more private than litigation.

Litigation is the most formal of the options available and is sometimes unavoidable if the dispute cannot be resolved.

This tends to be the case when significant sums of money are involved or when urgent remedies are required.

At Palmers, we can help your business handle any commercial dispute in a practical, efficient manner.

We want to support the hardworking business owners of Essex, so we can help you with creating clear contracts and resolving disputes should any arise. Speak to our team today to find out how we can help you resolve commercial