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Strategies for Resolving Business Disputes

Business disputes can be an unfortunate part of running a business, but there are ways for business owners and partners to avoid them. With the right strategies, open communication, and creative problem-solving, conflicts need not arise between two parties. In this blog post, we will discuss how business owners and partners can prevent disputes in their relationships and keep the peace. Read below to learn more.

What are business disputes?

Commercial disputes are disagreements between two or more entities that relate to business dealings, such as shareholding, contracts, debts and other issues. These disputes can range from a difference of opinion to legal action and court proceedings. Resolving these disputes often require the assistance of a mediator or commercial lawyer who can narrow down and identify the key issues and work together to find solutions.

Business owners and pertners usually encounter challenges that can be categorized into three main groups:

  1. Disputes with investors
  2. Disagreements among shareholders or partners
  3. Disputes involving employees and directors, as well as disagreements with customers or suppliers.

Shareholder disagreements

Shareholders are individuals or entities that own shares in a company and have privileges such as voting rights and the potential to earn dividends. When two or more shareholders are involved, it is important to enter into a shareholder’s agreement to regulate the relationship between them. If the company does not perform as expected, conflict between investor shareholders and owner shareholders can arise for a variety of reasons such as mismanagement, fraud or breach of contract. To avoid disputes, companies should put effective dispute resolution procedures in place by including them in the shareholder’s agreement. This will help prevent future conflicts and protect the rights of individual shareholders.

Supplier disputes

Supplier disputes are disagreements between two or more parties involved in the supply chain of a product or service, such as discrepancies over quality, price and delivery terms. These disputes can disrupt the flow of goods and services and be a drain on company resources, potentially leading to legal action. To reduce the risk of supplier disputes, it is important to have a clear commercial supplier agreement in place which specifies both parties’ obligations and responsibilities.


Licensing disputes occur when two or more parties are unable to agree upon the terms of a licence, such as in franchising, commercial agents and the entertainment industry. Such disputes often involve allegations of infringement or breach of contract, and having a commercial litigation lawyer review the terms of your licence agreements can ensure that your interests are protected.

Employee disputes

Employee disputes are common in businesses, and can involve allegations of discrimination, harassment, wrongful termination or other employment-related claims. Resolving these disputes can be expensive and time-consuming, often leading to financial damages and negative publicity for the company. It is therefore important for employers to have a clear understanding of employee rights, and an experienced employment lawyer can provide guidance on how to avoid and resolve them. Employers should also consider procedures for grievances and legally binding agreements as proactive measures to minimize the risk of employee disputes.


Alternative dispute resolution (ADR) is any method of resolving disputes outside the traditional court system, such as mediation, arbitration or negotiation. The goal is to reach a resolution that is fair to all parties without the expensive and lengthy process of litigation. Benefits include saving time and money, preserving relationships between parties, and providing more flexibility in terms of resolution because the parties have more control over the outcome. ADR should be considered if you find yourself in a business dispute.

Resolving a business dispute

According to Commercial Law Firm Adams Law

The first step in resolving a business dispute is to try to reach an agreement with the other party.

If you are unable to reach an agreement with the other party, you may need to pursue mediation or arbitration. Mediation is a non-binding process in which a neutral third party helps the parties reach an agreement, while arbitration involves a binding decision by a third party after reviewing the facts of the case. If these methods are unsuccessful, you may need to consult a lawyer and consider filing a lawsuit.