By far the most common cause of commercial disputes is the failure of the parties to adequately record the terms of their agreement in writing.
Consequences of not making Effective Business Contracts
By far the most common cause of commercial disputes is the failure of the parties to adequately record the terms of their agreement in writing.
When there is an inadequate written contract disputes can frequently arise in relation to:
- The scope of work that was to be performed,
- The terms of the agreement reached,
- The price or schedule of rates applicable to the work,
- Whether there was a variation to the scope of works or price,
- Whether the subcontractor was entitled to suspend work,
- What warranties or assurances were given in relation to the work,
- Whether a progress claim is also a Payment Claim under the Building & Construction Industry Security of Payment Act, and
- Whether things said in negotiations constituted misleading or deceptive conduct in breach of The Australian Consumer Law.
Due to the uncertainty that exists when a dispute arises in relation to an inadequate written, or oral, contract, typically:
- The claimant will accept an amount less than the amount claimed in order to avoid expensive litigation and/or the risk of their claim being unsuccessful, or
- The dispute will take longer and cost more to resolve.
Either way, there is usually a significant cost that comes with the realisation that your business is not making effective everyday business contracts.
Our experienced Business & Commercial Lawyers can assist your business make effective everyday business contracts by drafting standard form Business Contract documents, including customised Terms & Conditions of Trade.
Corporate Commercial Lawyers for Sydney and Newcastle
Need Answers Fast? Contact Us Today
The information in this article is not legal advice and is intended to provide commentary and general information only. It should not be relied upon or used as a definitive or complete statement of the relevant law. You should obtain formal legal advice specific to your particular circumstance. Liability limited by a scheme approved under Professional Standards Legislation.
