Disputes are almost inevitable in the business world.
They are a persistent risk right from when a business opens its doors. All business owners know this, but they should know the most common disputes they might deal with – as well as how to mitigate the risks.
1. Breach of contract
Disputes over the terms of a contract or a breach of contract are easily some of the most common of all business disputes. This is natural since contracts are a fundamental part of almost all aspects of the business world.
It is possible to prevent such disputes from turning into a costly lawsuit. When crafting a contract with a business partner, supplier or any other party, business owners must make sure they include specific details regarding:
- Each party’s responsibilities and rights
- Terms for terminating the contract
- Strategies for resolving disputes
Addressing these matters proactively is critical to mitigate the risks these disputes pose.
2. Partnership disputes
If a business has co-owners or partners, disagreements are common. After all, they often have two different perspectives. Partners can often address and resolve disagreements efficiently, but some can quickly evolve into a serious dispute.
These disputes generally stem from disagreements over:
- The division of their responsibilities
- The operation of the business
- Financial matters
While Kentucky law does not require business partners to establish a partnership agreement, it is an important step that partners should take to ensure they protect both their interests and investments in the business.
3. Employee issues
Any type of business, from small businesses to large companies, also face a risk of disputes with their own employees. The most common of these include:
- Wage and hour disputes
- Claims of wrongful termination
- Discrimination or harassment claims
Business owners must take great care to review both Kentucky and federal employment laws and ensure their policies and employee handbooks comply with them. They must also make sure they address any employee complaints or claims as soon as possible to prevent them from developing into a much larger issue.