How to Avoid Commercial Litigation
Regardless of the size of your company, a commercial dispute can derail success and become a financial burden. If litigation is required to resolve the dispute, it will be time-consuming, expensive, and can even hurt your company’s reputation. Although it is not always possible to avoid a lawsuit, there are measures you can take to minimize your risk. Below, one of our Utah business law attorneys explains what these are.
Draft a Contract
Oral agreements may be convenient and seem straightforward enough at the time. However, people can experience lapse in memories and misinterpret the original agreement. This can all lead to disputes that can result in costly litigation. A clearly well-defined and written contract can provide the necessary protection and set clear expectations and responsibilities for everyone involved. A well-crafted contract should include the following:
- Identification of all involved parties
- Detailed scope of services or work
- Clear terms of payment including amounts, methods, and due dates
- Clauses to terminate the contract
- Dispute resolution methods
Thoroughly Document All Business Operations
Contracts are not the only type of documentation you need when running a business. You should thoroughly document all business operations to create a trail of transparency that will be very valuable during any dispute. Some of the most important types of documentation include:
- Invoices and receipts
- Meeting minutes
- Emails and correspondence
- Employee records
You can use documentation as evidence in the event a dispute arises. However, thorough documentation can also establish your commitment to responsible and ethical business practices and possibly deter litigation.
Create a Respectful Work Environment
The work environment you create will play a critical role in the overall well-being of your business. If you can create a culture that prioritizes open communication, fairness, and respectful treatment, it can significantly reduce the possibility of disputes. Ensure that all employees receive anti-discrimination and harassment training to emphasize the importance of inclusivity and diversity and to ensure no one is subject to harassment. Implementing clear and confidential measures for employees to report complaints will also ensure they are handled fairly and swiftly.
Prioritize Legal Compliance
Ensuring your business is legally compliant not only helps you avoid penalties but it can also help you build a fountain of trust and integrity in your business operations. Make sure your company adheres to industry regulations, relevant employment laws, and licensing requirements by conducting periodic legal audits and ensuring all employees are trained on the legal requirements relevant to their employment positions.
Consult with a Business Lawyer in Utah
Owning a business comes with many challenges but cautious planning, a commitment to ethical practices, and vigilant legal oversight can help you successfully navigate any obstacle that arises. At AGS Law, our Utah business lawyers can help with your endeavor by helping you avoid litigation that could hinder your business, ensure compliance, and draft the documents you need. Reach out to us to schedule a consultation with one of our experienced attorneys and to learn more about how we can help with your case.
Source:
le.utah.gov/xcode/Title15/C15_1800010118000101.pdf
