When a trade relationship goes awry, go back to the contract

Clear, robust communication which are based on good faith are at the heart of healthy trade relationships.

Interruptions and misunderstandings to a two-way communication process may lead businesses into dispute.

Sometimes businesses can regather and directly resolve the causes of the problem. However, unfortunately, businesses that had earlier started on positive trade relations can end up in an intractable dispute.

Often the solution to the problem will be found in the contract both parties had entered, which contain the terms defining the relationship, the expectations and what will occur when things don’t go as planned.

In one sense, this should be assuring; when a contract has spelt out what to do when certain scenarios arise, it can help make the process towards resolution clearer and faster for both parties. Of course, we always want plan A to succeed, but we always need to consider the next best scenario: if not plan A, what is plan B, if not plan B what is plan C…

The more parties to a contract have planned for the possibilities of a number of situations arising then the more certainty and assurance they can give to their business operations.

Do your business contracts include dispute resolution clauses? Proof My Work Australia can help review your clauses for clarity and correctness. Visit proofmywork.com.au to find out more.