A broken business contract can create problems quickly. You may be dealing with unpaid invoices, unfinished work, missed deadlines or a business partner who no longer follows the agreement. Once a contract dispute develops, you may need to decide how to resolve it.
For a Fort Lauderdale business, that choice often comes down to two options: try to settle the dispute or take the case to court. Each path has potential costs and benefits. The right choice depends on your contract, evidence, financial interests and business goals.
What to consider before settling
Settlement allows you and the other party to negotiate the terms of an agreement instead of asking a judge or jury to decide the dispute. It also may help you resolve the matter without the time and expense of a lawsuit.
Before agreeing to a settlement, consider:
- Cost: Litigation can involve attorney fees, court costs, discovery and other expenses. A settlement may reduce some of those costs.
- Time: Negotiations may resolve a dispute sooner, while a lawsuit can take months or longer.
- Business relationships: If you want to keep working with a customer, vendor or business partner, a negotiated resolution may help preserve that relationship.
- Control: A settlement gives both sides a role in deciding the final terms.
However, settlement may not make sense if the other party refuses to negotiate or offers terms that do not address your concerns.
What to consider before taking a contract dispute to court
Litigation may become an option when negotiations fail or the financial impact of the breach warrants court action. Your evidence also plays an important role. Review the contract, invoices, emails, payment records and other documents that support your position.
The deadlines to file a lawsuit depend on the specific remedy you are seeking. For written contracts, Florida law generally allows five years to file a claim for monetary damages. However, if you are seeking specific performance—asking the court to order the other party to fulfill their contractual obligations—the deadline can be as short as one year.
Other claims, such as contract rescission, generally carry a four-year deadline. Because these time limits vary based on your circumstances, addressing potential disputes promptly can help protect your options.
Choosing your next step
There is no single solution for every contract dispute. Your potential damages, evidence, costs, business relationships and goals can all affect the decision.
If your Fort Lauderdale business faces a contract dispute, The Law Offices of Geoffrey D. Ittleman, P.A. can help you evaluate your legal options. Contact the firm at 954-218-5560 or fill up their contact form to discuss your situation and determine how you may want to proceed.