Litigation on a business can have a considerable impact. It can affect its sales, social standing, financial estimate, etc. The possibility of litigation on any business is regrettable but almost inevitable. Any business that is functional is almost sure to meet with litigation. Every legal controversy has its own type of conditions. But some conditions are there in business litigation that have a higher frequency than the others.
Understanding Business Litigation
Business litigation is an area of law that comes handy when people within the company need to resolve some problems amongst themselves. In such a case, a person brings the case to the Court of law and seeks a solution. The offered remedies are mostly financial, and the litigant pays for the same.
Business litigation is not in one form but many. There are specialised people who handle different disputes and you can go to them to seek help. Typically, both the sides are represented in the court of law. While they can also solve these cases without the intervention of the Court, at other times, the problem demands a trial to be held.
Types of business litigation
Let us look at some of the most common types of issues that take place in business litigation in Australia:
1. Contractual controversy
If there violates any terms of the business contract, then a Contractual controversy arises out of it. This is one of the most common types of business litigation. Often some business partner does not fulfil the terms of the business, resulting in a Contractual controversy. A debate may also arise from different interpretations of the business contract.
2. Commercial controversy
Disputes between two or more businesses can cause a commercial dispute. Companies can engage in a commercial dispute regarding a lease, property, ownership of a property, renewing a lease, construction of a building, etc.
The resolution of a controversy
There are three primary ways in which, any business can solve controversies that may either be commercial or of a contractual nature. Let us have a look at the solutions:
1. Discussing a problem
Discussing a dispute always helps and is usually the first and initial course of action. If both the parties can discuss and come to a solution that satisfies the terms of both of them, then the dispute is solved.
Here, they need no third party intervention. One important part of this process is to always make sure that everything gets noted down on pen and paper. This makes the discussion valid and standing.
The second option is to involve a third party if the initial discussion does not work out. Going to a court of law might cost the parties more and that is why intervention is a good option. Often, there are organisations that help you in the settlement of disputed if you take your case to them. The ADC or the Australian Commercial Dispute Centre is one such an institution in Australia.
If you seek the help of an intervening institution, then the concerned authority will listen to both the parties and then give a final verdict. This is more like a rule that is legally bound by law. This process can look like a trail as it involves proceedings, calling of witnesses, etc.
3. A trial
A trial will happen formally in a Court. Companies which cannot solve their disputes through the aforementioned processes will have to take the case to a Court. This will involve seeking the help of expert lawyers who can take the required measures to help a client.
Irrespective of whether the controversy is commercial or contractual, the Court will hold a trial based on the financial estimate of the demands that any of the parties make.