Dealing with contract disputes

Dealing with contract disputes


Dealing with contract disputes

Falling out with someone you can do business with emotionally draining, costly and time-consuming. Sometimes there is a break in the future. On other occasions your relationship may be successful. In either case, if you have a good deal, it's possible to sort things out.

Olexandr Kyrychenko , commercial dispute resolution lawyer with IMD Solicitors explaining the basics.

First step, check the contract

If you, your supplier, do not act as a contractor, do it yourself.

A well-drafted contract will act as a contractor in the context of a contract; any disputes.

Second step, determine how serious the breach is

Any failure to comply with the terms and conditions of the breach to understand the ramifications. Sometimes the breach will be in the middle of the contract and claim compensation. On other occasions the breach will not be serious enough for a small amount of compensation.

The consequences will have to be breached. Credentials will categorize the terms to be terminated.

I am looking for the right place, but it is also possible for me to be in the right position. So, for example, if there is a delay in the project with a deadline of £ 10,000 in lost business.

It is important to be aware that the contract is in progress. Where this happens any right is still to be lost. 

Third step, think about possible resolution

It is not uncommon for commercial contracts, and an increasing number of consumer contracts, to provide for disputes to be resolved without the need to go to court; for example, by stating that negotiation or mediation should be tried first, or by compelling the use of arbitration or adjudication. 

Avoiding court where possible is always advisable as court proceedings can be costly and time-consuming.  However, in appropriate cases the court can provide an effective way of resolving contract disputes, particularly those that are very complex.  Court proceedings may also be needed where the payment of compensation is not an adequate remedy for the breach that has occurred.  This might be the case where, for example, you want to force your supplier to perform a specific act, or you want an agent to refrain from doing something that is causing you damage.

Even where court action proves necessary, hopes of a mutually acceptable resolution should not be abandoned.  Your solicitor may be able to negotiate an appropriate settlement.   

Fourth step, think about costs

Contract disputes can become protracted, especially if you decide to make a stand on principle.  Positions can become entrenched and costs can begin to spiral out of control.  This is where your solicitor can help, by enabling you to see things objectively and from a commercial perspective. 

It is also worth bearing in mind that if the dispute cannot be resolved amicably and the matter ends up before a court, the general rule is that the losing party will have to pay the winning party’s costs.  You may be rubbing your hands together at this point if you think you are likely to win, but in the majority of cases the costs you get back rarely reflect the true costs that have been incurred, particularly when you consider the disruption to your business.

If you are involved in a contract dispute, please contact Olexandr Kyrychenko on 0333 358 3062 or email




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