The fewer legal disputes a business faces, the more it can focus on expanding and remaining profitable. Nonetheless, disputes are inevitable from time to time.
If your business relies on the products and services of different suppliers, then preventing disputes in this area should be an important focus. Outlined below are a few tips that could help reduce disputes with your suppliers.
Clear contracts can save a lot of trouble
Every business relationship should be founded upon solid contracts. The more clear your contractual terms are, the better protection provided to both parties. Your supplier contract should set out key terms such as delivery dates, volumes, prices and payment dates.
The terms of the contract can also include dispute resolutions. For example, what happens if a product cannot be delivered on time or must be substituted?
Written correspondence helps with records
It’s not uncommon for verbal agreements to arise, particularly between trusted businesses with established relationships. But verbal agreements are difficult to enforce and they can be disputed. That’s why it’s so important to communicate with your suppliers in writing.
Having clear records of correspondence can help to figure out who is at fault and which party has neglected their duties.
What if disputes do arise?
Unfortunately, even sound contracts cannot completely negate the risk of disputes with suppliers. However, they will give you better options when it comes to recourse. The clearer the obligations of all parties are, the easier a dispute can be resolved.
If you are in the midst of a supplier dispute, it’s important to protect your business and resolve the issue effectively. Seeking legal guidance will give you a better idea of your options.
