Common corporate issues that may require litigation

On Behalf of | Mar 2, 2021 | Blog

case, especially when the business finds itself at odds with another.

Commercial litigation is the area of law that deals with companies. It includes infractions involving the relations, rights or conduct of companies. As in any other legal case, there are some issues that come before the court more often than others.

Breach of contract

The top spot for sparking commercial litigation proceedings is a break or breach of a contract. When two or more parties set out to memorialize their agreements, they do so in a contract. The terms may involve things such as:

  • Parts supplied from third parties
  • Services provided by vendors or other businesses
  • Purchase or sale of goods
  • Employment terms and conditions

When one party does not fulfill its end of the agreement, the other may go to court to collect penalties and force the other party to follow the contract or pay more to get out of it.

Partnership squabbles

When those at the top start fighting about how the business should proceed or the money spent, the dispute may not easily resolve itself. Partnerships are the foundation of many corporations, and partnership agreements act as a blueprint for the signatories to follow. However, when a disagreement escalates and becomes one of contract enforcement, it may require litigation.

A business depends on its leaders, employees and relationships with third parties. When these falter and conflict ensues, the company may have to see the fight through in court.