by Attorney Eric D. PuryearA reality of every business is the eventual disputes with a client over the client’s failure to pay for good provided or services rendered, or the client’s dissatisfaction with those goods or services. Handling those matters properly is essential to the success of any business.
There are some situations where there is truly a misunderstanding with a customer as to the goods/services provided. In such cases, a properly worded letter from the attorney for the business can often help the non-paying customer to understand the situation and the proper remedy. By having the attorney handle process, the business can avoid saying things in a manner that harm their legal interests, as it is common for a business owner who is not an attorney to inadvertently make a statement that causes harm should the matter later end up in court.
Other times, a customer will try to avoid paying money that is due purely out of a desire to avoid parting company with that money. Such situations are more difficult to resolve through discussion with the customer, since it is not a misunderstanding but rather a bad-faith refusal to pay that is occurring. In such cases, litigation is often the only viable option for the business to recover the amount owed. Handling such cases the right way is important, both to recover what is due and to avoid a repeat of such problems in the future.
The best way for a business to handle such disputes is to avoid them entirely. Having the right contracts in place can go a long way to ensuring that everyone is on the same page and that there is not a real misunderstanding. Ensuring that a business has complied with all legal requirements to operate in the state is also an important thing, since businesses that have not done so may find themselves unable to properly enforce their legal rights. Business law is truly an area where an ounce of prevention is worth a pound of cure, so to speak. Doing things the right way, beforehand, can often allow a business owner to avoid disputes with clients, thereby saving both money and aggravation.