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Avoiding unnecessary disputes: dos and don’ts for business owners
May 27, 2025
By Fiona Hughes
Business disputes can affect cashflow and growth, and the process of litigation can be costly, time-consuming and damaging to a company’s reputation. As soon as the threat of a dispute arises, we recommend businesses take some early steps to help them manage and reduce the impact of the dispute in the most effective way.
Our commercial disputes expert, Fiona, has outlined some essential dos and don’ts, to allow businesses to be better equipped to face the disputes that could arise.
Get it in writing
Disputes can often occur as a result of a misunderstanding about what has been agreed between parties. Where possible, it is important that you confirm any agreements in writing, using clear language so that all parties understand what the agreement is for and who will do what. If agreements are made in person or over the phone, follow up with a message or email to communicate key terms. Having some business terms and conditions are a useful way of dealing with this.
Be organised and proactive
Ensure that you work toward any relevant dates and deadlines to avoid any unnecessary delays and difficult conversations with the other party. If you are unable to meet an agreed deadline for any reason, it is important to be upfront and honest to avoid any issues becoming more problematic.
Maintain accurate and comprehensive records
Maintaining records and documentation is a vital part of avoiding any potential litigation. By keeping detailed records of communications, transactions and agreements made, you will have essential evidence to support your version of events. It is important that you keep any specific correspondence and documents in relation to an agreement which may be vital in defending your position should any issues arise.
Consider negotiation and alternative dispute resolution
Litigation can be expensive, time-consuming and potentially damaging to a business’s reputation, but it is not the only route to resolution. It is never too early to think about different ways to resolve the issues. This could be through a face-to-face meeting with all parties (and sometimes their lawyers), commercially-based offers of settlement or, if the complexity requires it, a formal or informal mediation or arbitration with an independent third-party can guide everyone through a narrowing of the issues. These options have proven to be successful ways to bring issues to a close and will likely be quicker and cheaper than dealing with court proceedings.
Consider who should deal with a dispute
Disputes in small businesses can often feel like personal attacks or one side may feel particularly aggrieved at a challenge against them, regardless of who is in the “wrong”. Particular personalities involved in disputes can make progress or commercial resolution difficult. It will not always be possible to delegate dealing with the dispute to a colleague or business partner, but if this can be done, the heat is often removed from a situation and resolution can be quicker. It can often be beneficial to involve a specialist disputes lawyer to advise on the best resolution.
Ignore it
Ignoring correspondence or attempts to engage from your opponent could make things much worse in the long term and could increase any liability.
Delete or destroy information
Even if you think it will not support your version of events, it is important to preserve all documents and information relating to the potential dispute. Destroying it is likely to look worse for you, and there may be a good explanation for something you think is not helpful.
Assume one side is clearly right
Don’t think that you have no chance of successfully disputing an allegation, as there is often a way around it. Similarly, just because you have done something the same way for a long time does not mean that it is right or acceptable.
How can we help?
When you have exhausted your options but a resolution cannot be achieved, we recommend you take legal advice on your position before any legal proceedings are issued. Our specialist disputes team at Darwin Gray has years of experience in navigating disputes and our experts will be able to guide you through the options and provide you with the clear advice you need to tackle the issues head on.
If your business is facing a dispute, please get in touch with Darwin Gray today, using our contact form, on 02920 829 100 or via email on fhughes@darwingray.com for an initial free, no obligation call.
To speak to one of our experts today, please contact us on 02920 829 100 or by using our Contact Us form for a free initial chat to see how we can help.
