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How can a Colorado business owner avoid a contract dispute?


Not every business runs smoothly, at least not all the time. Like owners elsewhere, businesspeople in Colorado often face challenges that can affect their businesses' long-term health. Contract disputes are one of the toughest because their resolution is often hard to forecast. To avoid this type of business dispute, business owners can follow a few guidelines.

Most business agreements begin with contracts, so business owners should be cautious from the beginning and be careful about signing any agreement. There have been cases of business partners ending up in court after one party denied signing a contract. Make sure the terms are clear, understandable and spell out specific consequences when one or the other party does not meets the stated obligations.

What other options can help prevent a contract dispute? Use a notary public. The notary public is a special commission appointed by a state or county government. The person acts as an official witness to the signing of any agreement. A notarized contract can prevent costly litigation because both state and federal courts will acknowledge its authenticity. The notary can testify in court that the contract was signed, saving costly attorney fees and related expenses.

Another key to preventing disputes when entering an agreement is to thoroughly read the terms of the contract. If the parties believe modifications are in order, they can request revisions. Having an attorney involved from the outset also can help ensure their rights are protected throughout the process.

If a contract dispute leads to litigation, business owners can rely on the services provided by business litigation attorneys. These attorneys can help business owners protect their business interests, settle a case before it goes to trial and represent the business owner in the event that litigation proceeds.

Source: Entrepreneur.com, "Avoiding contract disputes," Chris Kelleher, accessed on Nov. 27, 2014

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