What is a contract dispute?
A contract dispute is simply a situation where you entered into a legal binding agreement with another person where you agreed to perform certain obligations and the other party agreed to perform certain obligations. However, sometimes, in business, we all learn that things are not always that clear and things are not always that simple. There may come a point in your relationship where the other party is not holding up their end of the bargain. When this happens, some sort of dispute usually arises. So, what should you do?
1. Review the contract.
The first thing you should do is review the contract. If the contract was drafted very well, it will outline the things you will need to do when you believe the other party is not holding up their end of the bargain. What does the contract say? More likely than not, you will need to notify them and given them an opportunity to cure. What does cure mean? Cure means fix the problem. Usually, you will have to put the other party on notice and they will have a certain amount of days to cure the problem. If there is no cure period, the contract is void. Therefore, the number one thing you need to make sure to do is that you have some type of detailed paragraph that outlines what to do in the event of a dispute.
2. Make sure that you are in compliance with all of the terms of the agreement as it relates to you.
You cannot put another party on notice and then tell them they have not done something if you have not done what you were supposed to do either. When you entered into the agreement, you also made promises as to what you have to hold up your end of the bargain. Both parties have to be in compliance. However, you first need to make sure that you have carried out your end of the agreement.
3. Document, document, document.
Document from the time the dispute has happened all the way up until the dispute is resolved. What does that look like? You must let the other party know that they are not in compliance IN WRITING. Make sure they receive the email and put on read receipts. If you cannot do so, write a letter, put in an envelope, and send it to them. Send it in a way in which you can ensure they will receive it such as certified mail, FedEx, or UPS. The next thing you will need to do is to document all future correspondence. This means all emails and text messages. Keep a record of all of this. The reason is because if they are not responding to you, that is a breach. If they acknowledge they are wrong and do not cure it, they are in breach. If you believe there is a dispute, you need to do what you need to do. Document when you put the other party on notice what you believe they are doing or not doing that is in breach of the agreement.
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