Litigation is every business’s worst nightmare. Legal Advice will tell you that not only is it time consuming and expensive, the trauma of it all can cause you to feel ill and affect your ability to make good business decisions, so business growth will be hindered. It can also affect employee morale and the reputation of your business. That can cause a lot of loss and take years to recover from.
So how do you avoid litigation? Here are some common sense tips to help you.
- Every agreement you have with anyone to do with the business should be put into writing. Both parties should read and sign the agreement – in fact, a legal agreement should be drawn up by lawyers. Such agreements can be between suppliers, customers, business partners and employees. Without an agreement the terms discussed and agreed on can easily be forgotten or deliberately not adhered to and you have no way of forcing the issue.
- As a business owner it is up to you to read all the agreements and ensure that the terms are adhered to by all parties. If you don’t know what these terms are, you won’t know whether they are being kept or not. You can easily be ripped off by a less than honest party who knows you haven’t read the terms of an agreement.