Understanding the situation
A commercial dispute typically involves two or more businesses (or a business and an individual acting in a commercial capacity) disagreeing over a contractual or trading relationship. Common sources include unpaid invoices, disputes over the quality or timing of goods or services, disagreements between partners or shareholders, and disputes arising from agency or distribution arrangements.
The way a dispute unfolds depends heavily on what was agreed at the outset — whether in a written contract, purchase orders, correspondence, or an established course of dealing — and on the applicable law and procedure at the relevant time.
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Possible options
Which combination is realistic depends on the value in dispute, whether the underlying facts are contested, and whether an ongoing commercial relationship needs to be preserved.
- Direct negotiation between the parties, often the fastest route where the relationship remains workable.
- A formal written notice setting out the issue and the outcome sought.
- Mediation or another form of assisted negotiation, where both sides want to preserve the relationship.
- A court-based process to seek a binding decision, subject to the applicable procedure and evidence.
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Practical steps
- 1Review the contract, terms of business or correspondence that governs the relationship.
- 2Set out the facts clearly, including dates, amounts and the specific issue in dispute.
- 3Gather supporting documents: invoices, delivery records, emails, meeting notes and any prior agreements.
- 4Consider raising the issue directly before escalating.
- 5Take advice on whether mediation or a court-based process better suits your circumstances.
