How can you prevent a contract dispute?

Prevention is better than cure when it comes to contract disputes. Whilst you cannot forestall every eventuality, it is crucial to take proactive steps from the outset

of contractual negotiations to minimise the chances of a disagreement.

Examples of the types of measures you might take include:

Ensuring the contract is watertight

The best way to avoid a contract dispute is to ensure that all your contracts are clear, unambiguous and accurately reflect the business relationship. Vague, ill-

defined terminology that is open to interpretation can cause significant confusion and disagreement further down the line.

Ensuring the contract is future-proof

What suits your business now may not do so in the future as you expand and diversify. Before entering into a contract, consider where you envisage your commercial

operations going over the course of the contract and ensure its terms do not stifle those goals, particularly if the contract is going to run for a significant period

of time.

Ensuring Compliance

Those responsible for negotiating a contract on behalf of your business should have a good understanding of its terms. However, other individuals, such as employees

and contractors, must be informed of their obligations and trained on the measures required to ensure compliance and avoid an inadvertent breach.