• 2022-06-01

Resolving Disputes Effectively: Legal Opinion for Entrepreneurs

Dispute is a part of human existence, and this can be found everywhere, including families, which are the smallest unit of any society. 

As an entrepreneur, business-related disputes are bound to crop up at any time. Whether your business is a sole proprietorship or a company, business-related disputes are bound to happen. 

However, while a company acts on its behalf as a legal entity and is represented by officers of the company, for a sole proprietorship, every dispute affects the sole proprietor directly. 

One sure way to minimise disputes or the outcome of disputes is to always have a clearly defined and written contract for every business deal.  That way, whenever a dispute arises, there are chances that it would be resolved in favour of the business or the entrepreneur, as the case may be. 

Business-related disputes can be settled by the parties through mutual understanding, the intervention of a 3rd party or judicial processes, as the case may be. 

While some of these dispute resolution mechanisms may require little or no cost, some can actually cost a lot, get complicated and even lead to financial losses, and that is why the need always to have clearly defined and written contracts cannot be over-emphasised.

Below are a few tips to help entrepreneurs resolve disputes effectively;

1. Always consult a lawyer for advice on new business deals you want to venture into with a third party.

2. Have a good lawyer draft and or review contracts for you before signing them.

3. Ensure that you fulfil your part of the contract satisfactorily. 

4. Always keep records- The need to keep records and documents cannot be over-emphasised as they always come in handy in the face of disputes. 

5. By all means, avoid self-help in the face of dispute.

6. Always consult a lawyer to discuss the right approach to resolve disputes, as using the wrong mechanism can lead to legal wrongs. For example, arresting someone for civil matters can lead to other legal actions against you. 

7. Approaching a court of law should not be your first approach to disputes. Give room for amicable settlement first.

At LegalEpp, we help you avoid disputes timeously and resolve them effectively whenever they arise. Do you need help? Talk to us now.