Common Disputes in Commercial Transactions
Commercial transactions are always fraught with much risk and danger. Given the amount of money and the parties involved in commercial transactions, that area of business contracting can be rather complex, making it a hotbed for disputes. Disputes can occur before a transaction is final, during the performance of the contract or after the contract is terminated. There are a few disputes that are more common in the world of commercial transactions. Below are among the most common disputes.
Intentional Interference with Contractual Relationship Disputes
Tortious interference with a contractual relationship is a common form of dispute in commercial transactions. In these disputes, the burden of proof is on the plaintiff to prove that the claim is justified. To win on this claim, the plaintiff must prove a few elements. The plaintiff must prove that a valid contract existed; the defendant had knowledge of the contract; and the defendant acted intentionally and purposely to financially injure the plaintiff. Intentional interference can show up in many ways in the commercial realm. For example, an exclusive distribution contract exists between a supplier and a seller of products. Another supplier becomes aware of this exclusive contract. The new supplier works intentionally and purposely to disparage the name of the current supplier or they may even try to use sabotage. This is with the purpose of convincing the seller to drop the current supplier thus financially hurting the current supplier.
There is a reason why a whole body of law is specifically dedicated to sales contracts. This unique area of commercial contracting is fast-paced and specialized. Because of the fast-paced nature of this industry, disputes commonly arise. Disputes can stem from the contents of an order, timing and delivery, or even whether a contract was made at all. The Uniform Commercial Code is a standardized set of laws governing financial contracts generally and has a section specifically dedicated to sales contracts. Many of the disputes that arise in sales contracting are resolved by the UCC.
Trade Secret and Noncompete Disputes
Disputes surrounding trade secrets and noncompete agreements usually occur after an employee or shareholder no longer works for a company. Trade secrets are closely guarded information that companies use to severe a competitive advantage over similar companies. That is why employees, shareholders and associates are required to sign contracts to keep trade secrets even beyond the timeframe of their employment. Similarly, noncompete agreements ensure (many times these agreement are limited in duration, geographical location and scope) that a former employee does not use the business intelligence gleaned from one company to serve another.
Fort Lauderdale Business Law Attorney
Legal disputes are inevitable no matter the industry. Hiring an attorney to become involved in your commercial transaction will ensure you have an advantage. If a dispute arises, a well-versed attorney can guide you through your options and keep you well-informed of your rights. Attorney Brendan A. Sweeney is a business law attorney with years of experience advising on commercial contracts and disputes. Contact us for a consultation.