Little Rock Contract Disputes Lawyer

Little Rock Contract Disputes Attorney

Contracts are vital to businesses, employers, and other professional relationships. They are useful for non-disclosure, employment, buying and selling, leasing, non-competing, and transactions for goods and services. Contacts enable both parties to understand their rights, responsibilities, and the consequences of breaching or failing the contract’s parameters. Unfortunately, there are several reasons why a contract may be disputed or invalidated, and this can complicate professional relationships. A contract dispute attorney is a vital asset when negotiating, mediating, or litigating these disputes in Little Rock, AR.

At Lemley Law Partners, our attorneys have 50 years of combined experience, and we want to use our knowledge to resolve your contract dispute as efficiently as possible. We aim to represent your interests, the interests of your business, and your rights. You may need help negotiating a contract, mediating a dispute, or filing a civil claim because of a contract breach. Our legal team can work to understand your personal and professional needs when resolving the dispute. Then, we can develop a strategy that meets those needs.

Common Contract Disputes in Little Rock

Contract disputes can occur while a contract is being drafted, as a result of mistakes made during drafting, or after the contract’s implementation. One of the most effective ways to avoid future disputes is to have legal representation present during the drafting, reviewing, and negotiation of the initial contract.

Some of the most common types of contract disputes include:

Invalid Contract

A contract dispute can occur when one is written incorrectly, confusingly, or otherwise in a legally invalid manner. All parties must have the mental capacity to sign a contract, and the contract must be signed. There must also be an exchange of value for the contract to be valid. Parties must also enter into the agreement based on mutual agreement and agree on the stated terms of the contract. Once parties sign the contract, this means that they mutually agree to the contract and its terms. The contract is still considered valid if one party disagrees with the terms but signs it anyway.The subject matter of the contract must also be clear to be considered valid. Everyone signing it must understand the language used in the contract. The contract terms can’t be vague or easily misinterpreted, or else it is invalid. Even if it is not invalid, a badly written contract means that disputes are much more likely.

Breach of Fiduciary Duty

Fiduciary duty is the responsibility and legal duty of a professional to act in the interests of the party they have a fiduciary duty to. A guardian has a fiduciary duty to their ward, and an attorney has a fiduciary duty to their client. If an agent, attorney, or other professional who owes a fiduciary duty provides misleading information, this may result in an ineffective contract and be a cause for a dispute.

Breach of Contract

Breach of contract disputes occur when one party to the agreement does not fulfill their responsibilities as outlined in the contract. A breach of contract requires the following elements:

1. Both parties entered into the contract.
2. The contract stated that both parties were to perform or refrain from certain actions.
3. One party completed their responsibility under the contract’s terms.
4. The other party did not complete their responsibility under the contract’s terms.

Breaches of contract may involve the other party failing to meet a specified deadline, failing to complete a task, or failing to pay for a task as outlined.

Fraud or Coercion

Both parties to a contract must enter the agreement willingly, with full and reasonable knowledge. When one party lies or misrepresents aspects of a business, transaction, or other relevant portion of the contract to get the other party to sign the contract, it is not a valid contract.

FAQs About Little Rock, AR Contract Disputes Laws

How Do You Handle a Contract Dispute?

For most professionals, resolving a contract dispute through mediation or negotiation is a preferable first step. Although business litigation is an option for resolving these disputes, it’s not ideal as a first option. An alternative dispute resolution, such as negotiation, is less costly, less public, and less time-consuming. Litigation also puts the final decision in the hands of the court rather than the disputing parties.

What Law Applies to a Contract Dispute?

Contract disputes are governed by the federal Contract Disputes Act of 1978 (CDA). This law outlines uniform procedures for resolving contract disputes in a clear manner. Both parties should negotiate or mediate in good faith while aiming to settle the dispute through negotiation and then at the lowest court level available.

What Is the Statute of Limitations on Contracts in Arkansas?

For any civil claims based on a breach of contract, the statute of limitations in Arkansas is 4 years after the breach occurred. The statute of limitations is the time limit that an individual has to file a valid claim for damages. When creating a contract, parties may alter this statute of limitations to be as low as 1 year, but they cannot extend it past 4 years.

Even if the harmed party wasn’t aware of the breach of contract, the statute is still 4 years. The only exception is when the contract requires a waiting period for the services or goods. In those cases, the individual could not have known that the contract was breached until they received the services or goods. The 4-year statute begins when the harmed party should have known that the breach occurred.

How Do You Avoid a Contract Dispute?

One of the most effective ways to avoid a contract dispute before it happens is to create a specific, straightforward, and legally enforceable contract. If all parties are fully aware of their rights and responsibilities, and all aspects of the contract are documented, disputes are less likely. This is much easier with an attorney who is qualified to draft, review, and negotiate contracts.

What Are the 3 Options to Resolve a Contract Dispute?

The main 3 ways that a contract dispute can be resolved are:

1. Mediation or arbitration. Disputing parties work through the dispute with one mediator helping the discussion.
2. Negotiation. Each party is represented by their own attorney as the dispute and resolution are negotiated.
3. Litigation. Parties take the issue to court to be resolved.

Work With a Qualified Contract Dispute Attorney

Lemley Law Partners can guide you through the process of contract creation or negotiation while protecting your rights during disputes. Contact our team to learn how we can help.