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How can contract disputes lead to business litigation?

Contracts form the basis of many business relationships. It is often the case that a Florida entity will require that a potential business associate enter into an agreement that outlines the entity's needs and expectations before it will engage in business services with it. Contracts are legally enforceable tools that provide business entities with means of establishing exactly what the parties agree to do with regard to their association and often also include provisions that explain what penalties the parties may face if they breach the terms of their contracts.

For example, a business may want to purchase goods from another company. In creating a contract the initial business may offer to buy a specified quantity, such as 100 of the goods from the second company in exchange for a payment of $10 per item or $1,000 for all 100. If the second company agrees to those terms a contract may be made between the two corporate entities.

However, most contracts require more detail than simply numbers and purchase prices. For example, when does the initial company require that delivery of the goods be made? And does the initial company require delivery in a particular manner, such as by truck or by post? What penalties or issues could arise if the second company does not comply with the agreement's terms or what may happen if the first entity fails to pay as promised?

As so many questions must be answered in business contracts it is important that they are created comprehensively and drafted clearly before they are signed by the parties. Disputes over contractual matters can quickly escalate into business lawsuits, and entities that hope to avoid these often preventable legal matters may consider working with business law attorneys to help them prepare sound legal contracts.

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