Best way to avoid Small Business Litigation

What is Litigation?

Litigation means “a dispute between two parties”. The disputes are generally in two categories; Criminal and Civil. In this brief article, I am referring to “Civil Disputes” arises because of transactions between the parties, commercial or non-commercial. The litigation comes when the parties are not able to resolve the disputes amicably.

Best way to avoid small business litigation is to:

· Written Agreements/Contracts.

· Being communicating regularly.

· Better to discuss relevant and prospective issues.

· Hold Meetings and keep Minutes of Meeting and get the same signed by all the Parties attending including the Owner/s to avoid any issues later.

Pre-Litigation Measures one can take:

· More care at the initial stages leads to latter stages being smooth and painless. Professional assistance committed to avoiding litigation can add value at each stage.

· Be very careful in choosing the parties with whom the business will be done.

· Spend time to find more about potential associate/partner.

· Start with some activities that build mutual understanding and confidence.

· Move into long-term or deeper involvement with caution.

· At each stage of the relationship, prepare clear documents that leave no room for misunderstanding.

· While in the relationship, take all possible care to avoid derailment.

· If things go wrong, try for the amicable resolution of problems.

· If amicable resolution not possible, try for exit by mutual consent.