Contracts are an essential part of conducting business. In fact, every business, from a small sole proprietorship to a large fortune 500 retailer that operates in all 50 states, enters into contracts whenever a customer buys goods or services. Business contracts can cover nearly every aspect of business and can include employment contracts, nondisclosure agreements (NDAs), buy-sell agreements, and purchase orders, just to name a few.
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.