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What kinds of disputes can turn into contract litigation?

Business litigation based on contract disputes can result from a variety of problems with different kinds of business agreements. New Jersey businesses may see their real estate contracts, employment contracts and vendor contracts all face scrutiny or claims of breach by other parties to the agreements. This post will look at some of the ways that contract disputes can arise in any of these varied types of business agreements.

First, any contract may be challenged based on its validity. A party may claim that a contract does not exist if one of the mandatory elements of the contract does not exist. If there is no offer, no acceptance or no consideration for performance on the contract, it is possible that the contract will fail based on never being fully executed.

Second, any contract can be tested based on its legality. Generally, a contract cannot require a party to it to do something illegal. Additionally, a contract cannot mandate actions on the part of a party that are not legally enforceable.

Third, even if a contract is valid and legal, it may still be disputed if the parties do not agree to the meaning of its terms. When parties make contracts it is important that they execute contractual terms that are clear, reasonable and understood by all that will be bound by the agreement. When contracts are vague and difficult to decipher, disputes can arise.

No type of business contract is immune from challenges and many types of business agreements face challenges based on their validity, legality and comprehensibility. Contracts may be litigated based on different claims and readers of this blog should remember that no two contract disputes are exactly the same. Individuals facing business disputes based on alleged contractual problems may seek the advice of legal professionals who practice in the business law field.

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