Recently, the United States District Court for the Northern District of California issued an important opinion in the case of Bell Prods. v. Hosp. Bldg. & Equip. Co. The court ruled that the Federal Arbitration Act (FAA) preempts a California state statute that requires that arbitration proceedings must remain in state. The decision could potentially have significant ramifications for California businesses and contractors who deal with out of state firms.
Many contract disputes arise over ambiguous terms. If you find yourself in this situation, you need to take swift legal action to protect the interests of your business. An experienced San Jose business contract disputes attorney can help. In many cases, resolving an ambiguity in a contract becomes extremely complex. It is important to understand the basic steps that are required by California law in order to attempt to reach an equitable resolution.
Today, a majority of businesses rely on contracts to fulfill their day-to-day operations. When you sign a contract with another business or individual, you expect them to perform their end of the bargain or agreement. When a party fails to fulfill their end of the bargain or breaches the agreement, your business can quickly run into financial trouble, losing a significant amount of profit, time and resources.
The purpose of contracts is to create a binding agreement for business transactions, but unfortunately, there are times when these are not upheld. Contracts can be disputed for their validity, enforceability, and meaning all of which can become complex. When there is a business contract dispute, an alternative resolution solution such as mediation might be suggested.
Entering into a basic contract seems like it should be a simple black and white situation, but there are several factors involved in regards to business transactions. Disputes often arise when there are is question over a contract's meaning, validity, or enforceability. Contracts help protect both businesses and consumers by making an agreement legally binding.