It's no secret that working as an entrepreneur comes with a lot of benefits. Not only do you create your own schedule, but you also have a strong possibility of exponentially growing your personal income.
Contents1. Partnership conflict2. Business Ownership Dispute3. Breach of contract4. Workplace conflict5. Asset DisputesManaging Commercial Disputes Can Seem DifficultHowever, there are many different nuances associated with running a business that you need to be aware of. One of the most important to consider is common trade disputes.
Let's explore what you need to know about them.
It's no surprise, then, that a partnership dispute is one of the most common conflicts that business owners face. No matter how efficiently you operate your business, there is always a risk that miscommunication will increase.
This is mainly because business partners are often extremely busy and not always able to stay on the same page as everyone else involved. For example, a company may have several partners who all have different philosophies regarding the overall business strategy.
If either partner makes a decision that affects the integrity of the business, they may not be able to come to an agreement. Another common conflict arises when a partner leaves the partnership. Remaining partners often struggle to decide how to allocate certain assets.
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Although not as common as a partnership dispute, commercial property disputes can be significant. These usually happen when another party has a problem with the commercial property a business is using.
For example, this company may have illegally expanded its office onto someone else's land. Or, the renovations may have violated local zoning laws. Whatever the reason for the conflict, these issues are often costly and time-consuming to resolve.
To avoid this in the future, it is essential to understand the laws and regulations related to the commercial property you are using. If in doubt, check the standards in place before doing anything that could cause problems later.
Whether or not you deal with this issue depends entirely on the terms of the contract.
To clarify, someone can file a breach of contract dispute if you miss certain deadlines. The same can be said if your customers do not feel that you have delivered on the quality you promised them.
The consequences of breaching the contract will also depend on the terms of the contract. Fortunately, many scenarios involve arbitration before legal action takes place.
It's basically a process that involves both parties coming to an agreement that works for both of them instead of taking the matter to court. Depending on the complexity of the dispute, arbitration can last for weeks or months.
It is important to note that if an agreement cannot be reached, the issue may lead to litigation.
Compared to the other types of conflicts, this one is relatively vague. To elaborate, a conflict in the workplace could be a problem between two employees, managers and even clients.
More often than not, the cause behind these disputes is often superficial. This means that they can come from cultural, political or religious differences. Simply put, conflict in the workplace usually stems from a difference of opinion.
However, it is entirely possible for employees to file a dispute related to their pay. For example, an employee may have worked 20 overtime hours in the previous month but was not paid. In a conversation with their manager, they were told that the company would not pay them the overtime rate.
In this case, it would be in the interest of the affected party to take legal action. The behavior of the employer in this scenario violates a large number of labor regulations. Another common cause behind conflict in the workplace is the occurrence of sexual harassment or assault in the workplace.
Like the aforementioned issues, workplace disputes often involve arbitration before litigation. This creates an opportunity to resolve the issue internally before taking legal action.
In order to grow your business, it is necessary to buy assets in most circumstances.
This can be in the form of equipment, land or even a commercial building. However, business assets are generally owned by an entire business entity and not a single individual.
This means that conflicts often arise when it comes to deciding the distribution of profits. Disputes may also arise regarding the classification of assets, as there may be disagreement in this regard. In general, large transactions require the approval of members of the company's board of directors.
It is not uncommon for many board members to disagree with certain details of the transaction. They may feel like the asset isn't a worthwhile investment, or they may also feel like there's no need to scale at this point.
The situation can become particularly complicated when buying several assets at once.
In some circumstances, it can even seem overwhelming. Fortunately, the guide above will help you fully understand the most common business disputes and develop a plan of action before they arise.
This will help put you on the right path to overcoming them. Looking for more tips that can help you later? Check out the rest of our blog for lots more useful information.
