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How can you avoid contract disputes?


New Jersey business owners like you, especially those who have smaller sized businesses, likely have some concerns about contracts. After all, it only takes a little bit of time in the industry to see that contract disputes can be time-consuming and extremely costly. So how can you avoid them?

FindLaw takes a look at ways to avoid litigation in construction. However, the principles here apply pretty universally to any business owner or situation in which a contract is necessary to conduct business. A lot of them revolve around the creation of a contract itself. For example, you should always get everything in writing due to the somewhat unreliable nature of human memory. Any contract changes should be formalized immediately, and the contract should be read thoroughly by all parties.

Fairness is also important. Ensure all terms of the contract are met by all parties. Make sure the payment being offered is truly worth the work being done. Get insurance and have contingency plans in case something goes differently than you expected, since you will still need to offer fair payment regardless of hurdles along the way.

Next is handling potential issues. Any problem should be resolved as soon as it’s noticed. When it comes to contracts, waiting to see if something “works out” on its own is almost always a recipe for disaster. Don’t let things sit and stew; contact a legal professional as quickly as possible if need be. Dealing with small problems in the now helps prevent them from becoming big issues in the future.


Understanding how this affects the small business economy is part of our job here at Santomassimo Davis LLP, as we primarily focus in providing expert Outside General Counsel for a variety of law firms and legal issues related to Corporate and Business Law  in New JerseyNew York and Pennsylvania.

Thanks for reading our latest blog talking about topical legal issues facing small businesses. Learn more from our Outside General Counsel Blogs.


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