5 Common Business Disputes and How to Resolve Them

Business doing fine and everything going on well is the joy of the entrepreneur. However, there never fails somewhere between the road when conflicts arise, maybe between the employees or other stakeholders. How do you deal with such situations? How do you mitigate that potential risk to the business and ensure it never happens again?

Well, this article stipulates some of the most common disputes that arise in the business environment and how you can handle them effectively. Amicably resolving these disputes is very crucial, more so the business partner disputes.

1. Employment Disputes

They are the disputes that generally arise while bringing in new employees. Concerns may be raised about discrimination according to gender. Some people may have it that the organization is biased and employs only people from one sex and leaves out the other. There may be concerns about age disability, race, marital status, or other forms of discrimination like tribalism. 

Under these disputes, there could arise so many issues; even the maternity leaves arguments, debates over salary disagreement, unfair dismissals, and so much more. Controversies over the representation of employees are also another major factor that brings about this type of dispute.

2. Disagreements between Firms

These are the disputes that arise when two businesses disagree over a particular issue. A symbiotic relationship between companies is crucial for their growth, but of course, there are times they may fail to agree. Resolving business disputes requires professional intervention or legal mediation so that no firm will go at a loss.

However, the severity of the dispute will determine how it can be resolved as they could even decide to sit down and talk over the matter.

3. Partnership Disputes

It is probably the most typical type of dispute experienced by businesses. Majorly it is the people in power that fail to agree with other partners, and that leads to a dispute. These disagreements will revolve around financial issues, hiring issues, and the change of leadership roles.

Resolving partnership disputes can be quite a challenging task. That is because usually, these disputes are very fierce and vigorous. Most of the time, these cases are taken to the very last option, which is the court because most partners fail to agree completely.

4. Breach of Contract Disagreements

Contracts are legally binding activities, and therefore, businesses should adhere to what they had all agreed initially. However, some firms may feel that the deal is categorically not working for them and so they could decide to pull out of the contract before it is over. That is where a business partner dispute arises.

Violation of the contract will only mean losses to one or more parties in the agreement, and therefore, they will have to quarrel over the matter. In case of another business breaches a contract, then it is potent that you consult with business lawyers in your area for the solutions.

5. Debt Collection Disputes

Disagreements will arise if you are having problems getting paid for what another business or organization owes you. This type of dispute is common if the services or products are delivered without asking for an upfront payment. It mainly affects solo entrepreneurs and freelancers.

How to Resolve Business Disputes 

Here are the ways through which you can solve the above disputes and many other disputes that may arise in your business.

• For the employment disputes, you could decide to sit down with your employees and talk the issue out. Perhaps you have brought in more female employees than the male; you need to show them a valid reason as to why you made that decision. The potential job seekers would also wish to know how the recruitment process is conducted. That dispute can be solved by making people understand why you chose that way.

Disputes between businesses can be resolved by going back to where they had their agreement and establish who is on the wrong. You could also put everything on paper before commencing such a relationship so that in case of disputes, you have a reference.

• Resolving partnership disputes can be done by planning. Draft a partnership agreement that will drive you in all the activities in the partnership, be it an exchange of power or how to share the profits. You could also talk it out amongst yourselves to try and find a viable solution. If you still do not see a solution, then the best action is breaking up the partnership.

• Contract breaches will only be resolved by getting legal advice. Now that the other firm has pulled out and did not maybe state reasons why you could consider the last option of going to the court. You may consult with business lawyers in your area for the solutions.

• Until a dispute arises over the debt to another business, it seems the debtor is not ready at all to pay. So the solution to this is taking legal action against the debtor. You could sue them in a court of law so that they face the law due to unethical practices.


Business disputes are inevitable; what matters is how you resolve them. Your approach could save or kill your business. Be very keen when handling disputes for the success of your firm.

Emily Lamp

Emily Lamp is a freelance writer, working closely with many aspiring thinkers and entrepreneurs from various companies. She is also interested in travel lifestyle and loves sharing her travel experiences through her writing.

Emily Lamp has 14 posts and counting. See all posts by Emily Lamp

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