Massachusetts business owners should be aware of five common contract disputes that many businesses face. These disputes often relate to breach of contract, ownership, employment and services, intellectual property, and non-disclosure agreements. When you’re dealing with a contract dispute, seek legal advice from a Massachusetts business attorney to understand your rights and help resolve it smoothly.
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Breach of Contract Disputes
Breach of contract is one of the most common reasons for a business dispute. Businesses often enter into contracts or agreements with other people and companies. For example, your business may have an office lease, a supplier agreement, or contracts with people who work for you. A breach of contract dispute arises when one party to the contract believes the other party failed to fulfill their obligations under the contract. For example:
- A supplier failed to deliver goods on time
- A supplier delivered the wrong goods or damaged goods
- A buyer didn’t promptly make payment for goods
- The lease payment was short money
- A contractor didn’t finish all the tasks agreed upon
- The contract doesn’t explain what happens in a certain situation, so the parties aren’t sure what to do
These are only a few examples of possible breaches of contract. If you believe that either party (including your own business) has breached a contract, please reach out to a business attorney for advice as soon as possible. You need a trained legal eye to read the contract and explain your rights.
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Ownership Disputes
Another common area of contract disputes is disputes over ownership or partnership in businesses. When a business has multiple owners, partners, or shareholders, they sometimes disagree. Often, the business’s formation document (partnership agreement, articles of incorporation, and the like) does not explain exactly what happens when this type of dispute arises. To decide the dispute, you may need to speak to a lawyer about the Massachusetts or federal laws that could apply to the situation. It’s possible you may need court intervention to rule on the dispute or help from a mediator to determine a path forward.
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Employment and Services Disputes
When businesses have employees, contractors, or service providers, disputes can arise related to the services they are contracted to provide and the payment for those services. Employees often don’t have written contracts, and Massachusetts employment is at will. You will need a lawyer to consult the relevant Massachusetts or federal laws governing employment. If the dispute relates to a contractor or service provider, you may need legal help to understand your business’s rights according to its contract with them.
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Intellectual Property Disputes
Businesses with intellectual property, such as trademarks or internally created materials that may fall under copyright law, may have disputes if other businesses try to use it without consent. Alternatively, another business may contact you and claim that your business is using their intellectual property. Further, you may run into problems if an ex-employee takes intellectual property and uses it outside the company. Speak to a lawyer familiar with intellectual property issues in Massachusetts to figure out how to move forward.
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Non-Disclosure Agreement Disputes
A non-disclosure agreement prohibits workers from taking certain information from your business and disclosing it to third parties without permission. If you have NDAs in place, you may need legal help to enforce them. If you don’t have NDAs in place but need them, please speak to a lawyer right away for assistance with preparing these important agreements.
Frequently Asked Questions
What is a contract?
A contract is an agreement between two or more parties that obligates them to exchange something of value. In other words, you agree to give something and get something in return. Contracts can be formed between two people, a business and a person, two businesses, or more than two parties.
Are business owners personally liable for breaches of contract?
In many cases, no, but the answer depends on the kind of business entity you have and the specific circumstances of the breach of contract. Please give us a call for a consultation so we can talk over your situation.
Your Local Business Lawyers
Are you looking for a dependable, experienced business lawyer who can help you handle contract disputes? You’ve come to the right place. Daigle Law Office’s attorneys can provide you with experienced business advice in Massachusetts. We help clients dealing with complicated situations who need solid and reliable information from knowledgeable local lawyers. Daigle Law Office’s attorneys consult with clients on Cape Cod and in eastern Massachusetts. To schedule a free initial consultation, call 508-771-7444 or use our convenient Contact Form.
