A contract provides the framework for any business transaction. They cover the formation of startups, mergers, partnerships, employees, and vendor agreements. A well-written contract should be “ironclad.” That means each party accepts the terms and conditions, and the business can proceed accordingly.

Of course, just because a contract is extremely well-written does not mean there won’t be disputes.

When conflicts arise based on a contract, it is time to bring in an experienced Lanham business litigation attorney, as you’ll find at GDH Law. We might not have written the original contract, but we can help with any dispute.

Signs You Need a Business Litigation Attorney

When a business dispute occurs, the fallback position should always be “What does the contract say?” A business litigation attorney can review the contract and identify any potential loopholes. Here are the signs you need to consult with a business litigation attorney:

Contractual Disputes

A contractual dispute arises when one party fails to fulfill their obligations under an agreement. That can occur when a vendor misses a deadline or a client refuses to pay for goods or services.

Lawsuits and Legal Threats

Every business is a target of a potential lawsuit. If you are served with a lawsuit, you need to respond with the help of a business litigation attorney. That holds true if you receive a demand letter or face threats of legal action.

Employment-Related Issues

Every employee in your company should sign a contract that details their responsibilities. These contracts protect your interests. However, there might be situations where an allegation of wrongful termination, discrimination, or wage disputes will arise.

Partnership or Shareholder Conflicts

When a partner backs out of a deal or there is a fiduciary duty breach, it can disrupt your business. In extreme cases, it might mean suspending operations until you can resolve the issue.

Any of the above conditions requires intervention from an attorney. The goal should be to find a fast resolution that will get your business back on track.

Benefits of Early Legal Intervention in Disputes

At the first sign of a dispute, you want to get an attorney involved. Early legal intervention can save you significant time and money by preventing an escalation of the dispute.

You don’t want a small issue that could be handled with a few phone calls to snowball into a major lawsuit.

When you activate a skilled business attorney, you can strengthen your legal position.

Your attorney can help secure evidence that might be lost or deleted. Early engagement also provides more flexible and customized settlements that align with your long-term goals.

Addressing conflicts early prevents the buildup of anxiety and tension associated with unresolved issues.

Understanding Breach of Contract Claims in Maryland

A breach of contract occurs when a party fails to fulfill obligations that are spelled out in a binding agreement. The type of breach that occurs will dictate the approach your attorney will take to resolve the issue.

Here are the types of breach contract claims in Maryland:

Material Breach: This is a significant failure that often results in the non-breaching party being able to cancel the contract and sue for damages.

Immaterial or Minor Breach: A partial failure happens when some of the contract duties are performed. You might not be able to fully cancel the contract, but you can still seek damages for a minor breach.

When you get an attorney involved in your contract dispute, your attorney needs to prove the following elements:

• Existence of a Contract
• A Specific Breach
• Damages

Your damages will be considered compensatory and should cover all the losses directly caused by the breach. In Maryland, you have to file any civil complaint within three years from the date of the breach. If the contract is under seal, the statute of limitations extends to 12 years.

Common Types of Commercial Contract Conflicts

According to the most recent data collected by the U.S. Small Business Administration,  Maryland is home to over 634,000 small businesses. That translates into 99.5% of all businesses in the state.

These businesses employ over 1.2 million residents.

Hopefully, these businesses can flourish without having to deal with any of these common contract conflicts:

• Breach of Contract
• Payment Disputes
• Interpretation Conflicts
• Non-Performance/Failure to Deliver
• Scope of Work Disputes
• Intellectual Property (IP) Disputes
• Partnership and Shareholder Disputes
• Termination Disputes
• Confidentiality/NDA Breaches
• Fraud and Misrepresentation

What to Expect During the Legal Consultation Process

When a contract dispute arises, you’ll want to speak with a business litigation lawyer to help resolve the issue. When you schedule your first free case evaluation with GDH Law, you can discuss the breach of contract and how it has impacted your business.

We’ll be able to ask questions and provide a preliminary review of the contract to see if the dispute has merit. Some disputes are obvious, while others require a deeper understanding of the contract.

This case review will also provide you with the opportunity to ask questions about fees and how we communicate with our clients.