A contract dispute is a disagreement between two or more of the parties involved in a legally binding contractual agreement. When a contract has been negotiated, set up, and agreed upon, but one of the parties doesn't meet all of the terms and conditions of the contract, that party could be in breach of contract. It's essential to realize that when you commit yourself to a legally binding contract, all your responsibilities and obligations must be completed in accordance with the written contract. To avoid contract disputes it is important for both parties to consult legal professionals, understand the terms of the contract before finalizing it and analyse whether you can complete all your obligations and responsibilities in accordance with the contract.

Contract is one of the most essential elements in business, this is why EU LAW FIRM contract lawyers have prepared a brief guide on how to avoid contract disputes. 

1. Negotiate.

Before committing yourself to a legally binding agreement, negotiate with other party. Make sure that the contract terms in stage of negotiating the contract are clearly stated. Review the terms carefully and make sure that you understand them.

Remember, right now you are in the stage of negotiating, thus you have not yet signed the contract, you can make changes and decide on the terms together with other party.

Negotiate with confidence, make yourself clear.  Contracts are governed by particular law (e.g. choice of law), that means that you are free to choose the terms of your contract within the limits of law. 

Make sure that the contract has no unfair terms. (For Latvian contracts, we invite you to read our Article on Unfair Contract Terms)

In stage of negotiation, if the contract concerns important deal or you want to make sure that it is structured and negotiated appropriately - hire a legal professional. The presence of a lawyer would help you to understand your rights and what may happen in case of breach or terminating the contract. 

2. Wording

It is vital that the language used in writing of the contract is clear and easy to understand. Make sure that other party clearly understands the terms of the contract, replace the difficult terms or vague language with uncomplicated wording (if possible).

When dealing with products and manufacturing - identify the product (use special numbers, codes, quantity, etc.), have a detailed and precise description of a unit or services you have to provide. 

3. Law

Pay attention to the choice of law. Sometimes the contract is signed and already is legally binding, but all disputes are resolved by the law of other country. 

Understand whether there is an international element in your contract, then there may be conflict of law rules in matters of contractual obligations. 

Understand the jurisdiction. Where would be your dispute resolved? Arbitration? The court of your country? Or the Brussels Ibis Regulation applies for determination of the jurisdiction? 

Pay attention to other documents that you can use and that may benefit your contract, INCOTERMS, International Conventions, UNDROIT etc. 

4. Check

Prior to signing the contract - show it to your lawyer. If there have been mistakes, your lawyer shall correct them. 

In case of breach of the contract or fraud, you can protect your rights.

EU LAW FIRM contract lawyers are experienced legal professionals in contract law and can help you to decide the best course of action.

Feel free to contact our lawyers for more guidance on writing a contract - info@eulawfirm.eu

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