One of the best skills that any business manager possesses is the ability to avoid legal disputes. All Minnesota businesses will experience legal issues from time to time, and there are methods that truly effective managers understand and apply whenever they are faced with one. These are actually common-sense measures for the most part that stress positive communication even when the opposing party is being negative in their approach. And many times the attitude and disposition of the opposing party can still dictate the ultimate method of dispute resolution, whether that would be mediation, arbitration, or a formal lawsuit based on the material facts of any particular issue.
Communication is the key to all aspects of good business relationships. Companies operate primarily on contracts, and contract disputes are the most common of all disputes that could lead to business litigation. Putting your own company in the position of the other party can be an effective method of establishing a framework for how to proceed with any problems that may arise within the business relationship. Always keep communication lines open.
Do not procrastinate
It is never a good decision to sit back and think a situation will rectify itself. This rarely happens in a serious issue that is costing either party money moving forward. The best way to address an issue is fix it before it becomes a problem. Always think forward. Some operational contracts stipulate arbitration as the only method of dispute resolution, which is not always good when all of the material details are evaluated.
Always remember that business relationships are built on solid communication and adherence to following the guidelines set forth in any agreement. An effective contract will provide consideration for all involved parties, and breach of those responsibilities to each other can quickly become a major issue when significant financial assets are involved.