Resolving commercial contract disputes: Detailed instructions

Article overview

Resolving commercial contract disputes is the process where related parties seek to restore their rights and obligations when there is a breach of contract. Commercial contract disputes can occur in any commercial transaction, including issues of rights and obligations between the parties. In this article, Long Phan will present in detail the methods of resolving commercial contract disputes and important notes when encountering these disputes.

Guidance on resolving commercial contract disputes
Guidance on resolving commercial contract disputes

What is a commercial contract dispute?

Commercial contract disputes are disagreements between parties regarding the implementation of contract terms. These disputes arise mainly due to violations of the rights and obligations agreed in the contract. According to Article 3 of the Law on Commercial 2005, commercial disputes relate to business activities, including purchase and sale of goods, provision of services, investment, trade promotion and other profitable activities. In these disputes, the parties can request resolution through different methods such as negotiation, conciliation, arbitration or court.

Common reasons leading to contract disputes

Commercial contract disputes often arise from the following factors:

  • Delay or failure to fulfill payment obligations: One party fails to pay on time as agreed in the contract.
  • Delayed delivery or failure to deliver as committed: The seller does not provide goods of the right quality, quantity or agreed time.
  • Providing unsatisfactory service: Service does not meet the standards or time according to the contract.
  • Violation of warranty obligations: The supplier does not perform the warranty or maintenance obligations of the product or service.
  • Fraud or dishonesty: One party to a contract commits a fraudulent act, causing damage to the other party.
  • Void contract: The contract is declared invalid because it does not comply with legal regulations.

These factors give rise to disputes between parties and sometimes cause commercial relationships to be interrupted.

>>> Reference: Things to keep in mind before signing a commercial contract.

Methods of resolving contract disputes
Methods of resolving contract disputes

Current methods of resolving commercial contract disputes

According to Article 317 of the Law on Commercial 2005, there are four main methods to resolve commercial contract disputes:

  • Negotiation: This is a method of resolving disputes through the parties voluntarily agreeing and agreeing to find a solution. Negotiate without the intervention of a third party, helping to save costs and maintain cooperative relationships.
  • Mediation: The parties may request the assistance of a third party (mediator) to mediate the dispute. Mediation helps parties find a peaceful solution without the need for a legal judgment. However, if mediation is not successful, the parties may have to continue with other methods.
  • Arbitration: If the above methods are not effective, the parties can choose arbitration as a method of dispute resolution. The arbitrator will make an award that the parties must abide by. The arbitration award is final.
  • Court: The final method is to resolve disputes in Court. This is the agency with the highest authority, capable of enforcing the judgment. However, the court process can be lengthy and expensive.

Notes when resolving commercial contract disputes

When encountering a commercial contract dispute, the parties need to pay attention to the following issues to ensure their rights:

  • Choose an appropriate resolution plan: The parties need to consider the actual situation and choose the most appropriate dispute resolution method, not only in terms of legality but also in terms of cost and time.
  • Ensuring the legality of the terms in the contract: The terms in the contract need to be clear, specific and comply with the provisions of law to avoid the contract being declared invalid.
  • Transparency and honesty in dispute resolution: Parties need to comply with the principles of transparency, cooperation and respect for legal regulations to avoid prolonging the resolution time and causing further damage to the parties.
  • Prepare evidence: In case of dispute resolution through court or arbitration, the parties need to have sufficient evidence to protect their rights.
 Consulting on resolving contract disputes
Consulting on resolving contract disputes

Consulting service for resolving commercial contract disputes at Long Phan

Long Phan provides professional and effective commercial contract dispute resolution consulting services. With a team of experienced consultants, we will help customers as follows:

  • Consulting and detailed guidance on contract terms, rights and obligations of the parties.
  • Analyze the causes and extent of disputes, propose solutions.
  • Advise and guide parties on how to negotiate and mediate to reach a reasonable agreement.
  • Representing clients in arbitration disputes, protecting legal rights.
  • Support procedures for implementing arbitration or court decisions to ensure customers’ rights.
  • Consulting on resolving commercial contract disputes in international transactions.

Resolving commercial contract disputes requires a solid understanding of the law and various resolution methods. Choosing the right resolution method will help protect the interests of both parties and maintain a long-term cooperative relationship. If you need professional support in resolving commercial contract disputes, do not hesitate to contact Long Phan via the hotline 0906735386 to receive advice and dedicated support from our team of experts.