The 5 most common mistakes in resolving business disputes – how to avoid them?
Business disputes can be a serious burden on any company – both financially and in terms of time. Contrary to popular belief, many of the problems associated with conflict resolution can be minimised and sometimes even avoided altogether if action is taken early enough. Let’s take a look at the five most common mistakes businesses make in litigation and arbitration and how to avoid them.
1. Taking legal action too late
Often entrepreneurs delay taking legal action, hoping for an amicable resolution of the conflict. While mediation is a valuable avenue, sometimes procrastination leads to the loss of important evidence, a statute of limitations on claims or a worsening of the company’s financial situation.
How can this be avoided?
As soon as conflict seems inevitable, it is worth seeking legal advice. Preparing a strategy early on allows you to manage your case effectively and avoid costly delays.
2. No arbitration clause in the contract
Contracts without an arbitration clause are a frequent source of complications. Arbitration is a quicker and more flexible form of dispute resolution compared to the ordinary courts, but the absence of an appropriate provision in the contract precludes this possibility.
How can this be avoided?
When drafting the contract, it is worth ensuring the presence of a precise arbitration clause that specifies, among other things, the place of arbitration, the language of the proceedings and the arbitral institution. Platforms such as ARBI3 offer ready-made solutions in this regard, helping to create provisions tailored to the specifics of the cooperation in question.
3. Misunderstanding of the costs of the proceedings
Many entrepreneurs are unaware of the costs that can be associated with litigation. High court fees, lawyers’ fees and costs associated with proceedings can put a significant strain on a company’s budget.
How can this be avoided?
Before initiating legal action, it is worth exploring various dispute resolution options. Arbitration at ARBI3 is often more cost-effective than traditional litigation, thanks to its transparent pricing and limited paperwork. To better estimate potential costs, you can use the arbitration cost calculators available.
4. Inadequate preparation of evidence
Lack of adequate documents, witnesses or other evidence is one of the most common reasons for losing cases. Inadequate preparation can result in even legitimate claims being rejected.
How to avoid this?
Already at the stage of collecting materials, it is worth taking the help of specialists who know what evidence will be crucial in a given case. The experts at ARBI3 help to prepare complete and solid evidence, which increases the chances of success.
5. Lack of experienced referees
Choosing the wrong arbitrators can affect the speed, quality and outcome of the arbitration process. Sometimes entrepreneurs are only guided by cost, overlooking the experience and competence of the experts, which leads to additional problems.
How can this be avoided?
When deciding on an arbitration, it is advisable to make sure that the arbitrators chosen have the right experience and specialisation in the relevant area of law. ARBI3 offers access to a team of experienced arbitrators who specialise in different areas, allowing for a smooth and professional resolution of the dispute.
Why choose ARBI3?
ARBI3 is a state-of-the-art platform that helps entrepreneurs avoid common pitfalls in resolving business disputes. We offer:
- Transparent arbitration rules,
- Expert support at every stage of the dispute,
- A flexible approach tailored to business needs.
Don’t let a conflict get out of hand. Take the right steps today to resolve disputes quickly, efficiently and with minimal stress.
Do you have questions? Contact our team and together we will find the best solution for your business.
