Business agreements and contracts are necessary when contemplating any major transactions with another company or even another individual. These contracts are put into place to mitigate any further contract disputes or prevent disputes from occurring. However, if the business contracts are breached or another outside event occurs, you may have need of a business litigation attorney to assist you in protecting your company and your interests.
Contracts serve an important role in all business transactions and provide a blueprint for the transaction and what is to occur going forward. Parties on either side of a business contract enter into a contract not with the belief that the transaction will end in a dispute, but simply to protect their company. However, unfortunately many business transactions do end up in disagreements or disputes which can have legal consequences depending on the contract language.
Business litigation often involve the following types of disputes:
- Breach of contract
- Breach of fiduciary duty
- Shareholder disputes
- Corporate agreement disputes
These disputes can lead to severe consequences when related to important contracts and agreements that result in the loss of money or other business consequences. These types of business disputes can also attract the attention of federal authorities if they involve stockholder impropriety and it is therefore important to protect your business from any actions caused by a shareholder or director.
The Corporate Structure
Business litigation can involve a number of different disputes based on different entity structures. Corporations are typically a more common type of corporate structure and this type of structure can lead to not only ordinary contract disputes, but also major fiduciary duty disputes due to shareholder and director responsibilities. If a director or shareholder oversteps their boundaries or engages in illegal action, the company or other member can bring an action against this person. An initial company agreement or bylaws provide regulations on appropriate actions that shareholders and directors can engage in, and will involve the appropriate remedy for breaching these fiduciary duties.
Business disputes are also brought between two different corporate entities as the result of mergers and acquisitions or contracts with suppliers and buyers. Mergers and acquisition require the preparation of purchase agreements which outline the transaction and provide for all “what if” language to cover any potential breaches. Other contracts involving suppliers and buyers will detail the provisions of any transaction, as well as what will be considered a breach of contract (such as 7 days late on payment).
MichieHamlett | Charlottesville, Virginia Business Litigation Attorneys
If you or your company are facing a business dispute or want to protect yourself in case of a future business dispute, do not hesitate to contact the attorneys of MichieHamlett. Our attorneys have years of experience in handling business transactions and disputes. Our attorneys understand that your business is often the way you provide for your family, and we will work hard to ensure that a breach of any business contract does not go unpunished.