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Negotiating a business dispute is often the best strategy

On Behalf of | Oct 2, 2024 | Business Law

Most savvy business leaders in New York City and the surrounding communities know that litigating a dispute with another business is both costly and risky.

Taking a court case all the way to trial can cost well into six or even seven figures. These costs do not include a business’ lost employee time and the emotional stress on those involved in the dispute.

Furthermore, no matter how compelling one thinks their case is, there is always a chance a court could deliver a disappointing and economically damaging decision.

In the worst-case scenario, a poor legal outcome can make it impossible for a business to operate at a profit.

The expense and the risk of litigation are reasons why a business may prefer to try to negotiate a contract dispute or other business issue. Often, negotiation is done informally, without the help of a hired mediator or anyone except possibly the business’s attorneys.

A bonus to negotiation is that parties have more leeway to think outside the box to come up with creative solutions to their issues.

When handled correctly, negotiations save businesses money and risk

Business disputes are bound to happen to just about every company at some point. The outcome of these disputes may depend on decisions leadership makes early on.

Negotiation is not the right option in every case. However, when handled correctly by someone with the skill and experience to do so, it can lead to the best possible outcome for the business.

On the other hand, there have been times when aggressively pursuing a trial has wound up significantly hurting a person’s business interests.

Negotiating is one legal option for resolving business disputes such as disagreements over contracts or intellectual property disputes. A business should evaluate it along with their other legal options and alternatives early on in a dispute.

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