What is a contract dispute? and What are the common causes of contract disputes?

Contract disputes are disagreements between the parties to a contract. Often, contract disputes arise when one party fails to fulfil their obligations under the

contract, or when the parties disagree over the meaning of a contractual term.

Common causes of contract disputes include:

Format

Contracts do not only arise when the parties negotiate and sign a written agreement. They can be formed verbally, through correspondence, or by conduct. Disputes

regularly arise over the terms of contracts made in these manners, or even over whether a contract exists at all.

Clarity

Well-drafted commercial contracts are clear, unequivocal and plainly set out the basis upon which the parties have agreed to do business. Even the choice of the most

apparently innocuous words, such as ‘and’ as opposed to ‘or’ must be clearly thought out to avoid issues down the line.

Breach

The parties to a contract must perform their duties in line with the contract. If they do not, they may be in breach. Examples of instances in which a breach might

occur include when a seller delivers defective goods, or when a buyer fails make payment on time.