Business disputes are more common than many people realise. A customer who refuses to pay, a supplier who fails to deliver, a contract that has been interpreted differently by both parties. These situations can arise at any stage in any type of business.
The question most business owners ask is not whether a dispute is serious, but whether it is serious enough to involve a solicitor. Here we explain the situations where legal advice is likely to make a real difference – and why acting early is almost always better than waiting.
When the other party has stopped communicating
If a customer, supplier or business partner has gone quiet despite repeated attempts to resolve a matter, it is often a sign that the dispute is not going to resolve itself. A solicitor can send a formal letter before action – a clear, professionally worded demand that sets out your position and gives the other party a deadline to respond. In many cases this alone is enough to prompt a resolution without any further action being needed.
When a significant sum of money is involved
There is no fixed threshold at which a dispute becomes worth pursuing legally, but as a general rule the higher the sum involved, the more important it is to take advice early. A solicitor can give you a realistic assessment of your prospects, the likely costs involved and whether the other party is likely to be able to pay even if you win – all of which are important factors in deciding how to proceed.
When you have a written contract in place
If there is a written contract between you and the other party, a solicitor will be able to advise quickly on whether it has been breached and what your options are. Contracts often contain clauses that affect how disputes must be handled – for example, requiring mediation before court proceedings can be issued, so it is important to understand what you have agreed to before taking any action.
When the dispute involves your reputation or business relationships
Not every dispute is purely financial. If a dispute threatens an important business relationship, your reputation or your ability to continue trading, the stakes go beyond money. A solicitor can help you navigate the situation in a way that protects your wider interests, not just the immediate issue.
When the other party has instructed a solicitor
If you become aware that the other side has taken legal advice, you should do the same. Responding to a solicitor’s letter without legal advice of your own puts you at a significant disadvantage. Even a brief initial consultation can help you understand your position and avoid making statements or offers that could be used against you later.
When court proceedings have been threatened or issued
If the other party has threatened to issue a claim, or you have received court papers, you should take legal advice immediately. There are strict deadlines for responding to court claims and missing them can result in a judgment being entered against you by default, regardless of the merits of your case.
Does every dispute have to go to court?
No and in most cases it does not. Going to court is time-consuming, stressful and expensive and it is rarely the first option a solicitor will recommend. Most business disputes are resolved through negotiation, formal correspondence or alternative dispute resolution (ADR) such as mediation, which allows both parties to reach an agreement with the help of an independent third party.
At Challenor Gardiner we always look for the most practical and cost-effective way to resolve a dispute. We will be straightforward with you about the options available, the likely costs and the realistic prospects of success – so you can make an informed decision about how to proceed.
Get advice from Oxford business dispute solicitors
If you are dealing with a business dispute and are not sure whether to involve a solicitor, the best first step is a conversation. Our civil litigation and business law solicitors in Oxford have been advising businesses for over 170 years and can help you understand your options quickly and clearly.
Call us on 01865 721451, email info@challenor-gardiner.co.uk or contact us online.
Find out more about our civil litigation and dispute resolution services