3 Common Types of Contract Disputes

Businesses and individuals often sign contracts to ensure an agreed-upon level of service. These arrangements provide certain guarantees and strictures both parties must follow. If they do not, they risk breaching the contract.

Disputes often occur because of poor wording. But even the most flawless agreement may come under scrutiny. Commonly disputed contracts include lease agreements, business arrangements and termination contracts.

Leases

Lease contract disputes involve landlords and tenants. Tenants legally bind themselves to abide by rules and policies defined by the landlord or owner when they sign the agreement. Similarly, the landlord agrees to provide certain services or repairs. If one party does not adhere to these terms, the other may dispute the contract. USA.gov suggests that parties attempt to handle the dispute between themselves first—and get everything in writing.

Business or Service Contracts

A service contract dispute is not the same as a breach of contract. With a breach of contract, one or both parties violate the contract agreement. A dispute, however, does not necessarily involve a violation. Both parties may believe they are holding up their end of the bargain. Disputes often happen when the parties cannot agree on how and when to fulfill the contract. They can also occur around issues of payment.

Severance Agreements

An employer and employee may sign a severance agreement at any time during an employee’s tenure. A severance agreement lays out specific terms the employer must fulfill upon the employee’s discharge. The U.S. Department of Labor notes that someone who feels an employer violated a severance agreement may receive help from the Employee Benefits Security Administration.