After several unsuccessful attempts to resolve a business-related contract dispute with the involved parties, filing a lawsuit is often the next step. If you win your case, you can obtain a remedy that addresses your losses or harm.
Although the legal system can help you address contract disputes, there are many things you should consider before automatically seeking litigation. Carefully weighing the considerations below can help you choose the proper approach to your legal matter.
Do you have grounds?
To be eligible for a lawsuit, the other party must have broken the bonds of the agreement, causing you to suffer damages. That means you must ensure that the problem between you is significant enough to warrant the court’s time.
For example, a lawsuit may be appropriate after a significant breach of the contract’s terms.
Are you prepared to sacrifice the relationship?
Litigation in the commercial arena nearly always spells the end of business relationships that existed before the contract dispute. Ensure that sacrificing the partnership will not end up harming your company.
For example, if you rely on a specific distributor or manufacturer to meet customer demands, you may want to continue trying to resolve the matter out of court.
Have you considered alternatives to litigation?
Lawsuits are not the only effective means of resolving a contract dispute. Alternatives such as mediation or negotiation under the guidance of a legal representative can often lead to a faster resolution and fewer costs.
As a bonus, using one of these alternatives may help to preserve your business relationship with the other party. A good next step is seeking a legal opinion and learning more about commercial litigation in New Jersey.