Category: Contract Law

What Are Common Business Contract Disputes?

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Contract Disputes

According to the International Association for Contract and Commercial Management, nine percent of contracts experience a claim or dispute. Contract disputes can happen due to unexpected business circumstances or the unwillingness of a contracted party to deliver the products or services they agreed upon.

The following are some of the most common types of business contract disputes:

  • Breach of contract.
  • Business-to-business disputes.
  • Partnership disputes.
  • Non-compete agreements.
  • General liability.
  • Sales contract.
  • Service contract.
  • Employment contract.
  • Commercial lease.
  • Business partnership agreements.
  • Joint venture agreements.

Knowing common contract disputes will make your business better prepared for potential litigation.

What Are the Components of a Business Contract?

The main parts of a business contract include: an offer, mutual consideration, transaction details, and acceptance. Language in the contract should be clear and concise. Without the critical components, you will likely experience legal issues. Safeguard your contract by detailing the essential parts, along with standard clauses found in business contracts.

What Are Clauses in Business Contracts?

Business contracts will have different transactions, payment terms, and other components. You can organize these components by dividing your business contracts into main clauses. Common clauses in business contracts include:

  • Arbitration clause.
  • Choice of law clause.
  • Confidentiality clause.
  • Definitions clause.
  • Indemnification clause.
  • Severability clause.
  • Warranty clause.

Why Should You Consider Legal Guidance for Your Business Contracts?

Business disputes can happen with any contact. A strong business contract that is well-worded is paramount. Begin with a clear purpose in mind when drafting your business contracts.

If you have a business, a skilled lawyer can review your contracts. A reputable lawyer can prepare, negotiate, and review contracts pertaining to the following:

  • Business purchase agreements.
  • Commercial leases
  • Employment contracts and non-competes.
  • Sales contracts.
  • Shareholder and partner agreements.

Philadelphia Business Lawyers at Sidkoff, Pincus & Green P.C. Will Ensure That You Have Solid Business Contracts

Business contracts have many complex components, and a skilled lawyer can ensure that your contracts are binding and strong. If you need guidance with drafting and finalizing your business contracts, contact our Philadelphia business lawyers at Sidkoff, Pincus & Green P.C. today. Call us at 215-574-0600 or contact us online to schedule an initial consultation. Located in Philadelphia, we serve clients throughout Pennsylvania and New Jersey.

 

Claims for Damages and Lost Profits in Pennsylvania

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As a general rule, damages need not be proved with mathematical certainty. Nevertheless, sufficient evidence must be produced so that a court can arrive at an intelligent estimate without conjecture. See, Delahanty v. First Pennsylvania Bank, N.A., 318 Pa.Super. 90, 119, 464 A.2d 1243, 1257-1258 (1984). The plaintiff bears the burden of proving damages by a fair preponderance of the evidence. Id. at 118, 464 A.2d at 1257. Loss of profits are recoverable upon proper proof both in contract and tort cases.  Id. at 120, 464 A.2d at 1258. The amount of such damages is an issue of fact to be decided by the fact finder. Id. at 117, 464 A.2d at 1257. See also, Glomb v. Glomb, 366 Pa.Super. 206, 216, 530 A.2d 1362, 1368 (1987); Simmons v. Mullen, 231 Pa.Super. 199, 214, 331 A.2d 892, 900 (1974). The fact finder’s determination of damages “should not be interfered with unless it clearly appears that the amount awarded resulted from partiality, caprice, prejudice, corruption or some other improper influence.” Delahanty v. First Pennsylvania Bank, N.A., supra 318 Pa.Super. at 117, 464 A.2d at 1257.

Under Pennsylvania law, it is well settled that fixed overhead costs are not properly deductible from lost profits. Jessup & Moore Paper Co. v. Bryant Paper Co., 297 Pa. 483, 147 A. 519 (1929); Burd v. Campbell Hosiery Co., 150 Pa.Super. 367, 28 A.2d 365 (1942). Fixed overhead costs are costs which are constant in nature, and which would not have been affected by a breach of contract.  The inverse of this principle of law is that variable costs (i.e., those which are not constant in nature) are properly deductible from lost profits in a breach of contract action. See, Kutner Buick v. American Motors Corp., 868 F.2d 614, 617–18 (3d Cir.1989) (“[A]s a matter of both fact and law, fixed costs are irrelevant to the determination of loss of net profit from the determination of a business activity. The only proper focus is revenue generated less variable costs …”).

If you are on either side of a breach of contract or tort claim in Pennsylvania, please feel free to contact an attorney at Sidkoff, Pincus & Green, located  in Philadelphia, Pennsylvania.