Commercial litigation happens when one business is in dispute with another. This often happens if one business owner feels the other did not fulfill their end of a contract. If you are a business owner, you are obviously going to be interested in making sure you handle all of your business deals in a way that will offer you protection in case something goes wrong. Here are 3 tips you should follow on every business deal to help ensure that your company avoids getting dragged into commercial litigation.
All Relationships Should Be Governed By Contracts
It's obviously much better to spend money on an attorney to review your business contracts before they are signed as opposed to having to hire a lawyer after you find yourself in trouble. Any significant relationship between your business and another company should be governed by a contract that sets out clear expectations for both parties. The contract should also state any penalties if either side does not keep their end of the bargain. If you hire a lawyer to help you craft these contracts in advance of starting a new relationship, you will have the upper hand if something does go sideways.
To put it simply, when it comes to commercial litigation, the company that has the better documentation will likely win. If you aren't keeping meticulous documentation on all of your business transactions, start doing so now. In court, it's not about what you say happened but what you can actually prove happened. Keep detailed records so that the judge or jury does not have to do any guesswork or read between the lines. Having detailed records to show the other side could also stop them from even filing a lawsuit in the first place.
Invest in Training
Even if the business owner does everything properly, the business could still be open to a lawsuit if an employee under your command makes a mistake. Taking the time to properly train and educate your staff around all company policies can help protect you from commercial litigation and may even get you off the hook if you can prove the rogue employee acted on their own accord outside of the company guidelines.
Keeping your business profitable is often hard enough as it is, but it can be especially hard to keep your head above water if you have to deal with commercial litigation. In order to keep your business out of court, have a lawyer review all of your contracts, keep detailed records of all interactions with your clients and partners and make sure all of your employees are on the same page with you. For more information, contact a professional in your area or visit a website like http://www.vanblk.com.