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Business → Business disputes → Nature of disputes
Overview — Nature of disputes

Currently updated by Bill Andrews, Senior Associate, Bartier Perry (NSW)

Originally authored by David Creais, Executive Lawyer, Bartier Perry (NSW)

Steve White, Principal, White SW Computer Law (Vic)

Currently updated by Roger Wade, Director, WadeLegal (Qld)

Originally authored by Warren Wackerling, Senior Associate, Holman Webb (Qld)

Currently updated by Eric Ross-Adjie, Principal and Andrea Keri, Principal, Warren Syminton Ralph (WA)

Originally authored by Lorraine Madden, Senior Associate; Maria De Martino, Associate and Parisa De Jonge, Lawyer, Karp Steedman Ross-Adjie, Lawyers (WA)

Andrew Robertson, Partner; Juniper Watson, Associate; Nicola Caon, Lawyer and Ryan Kuss, Clerk, Piper Alderman (SA)

Tim Tierney, Principal, Tierney Law (Tas)

Currently updated by Lyn Bennett, Consultant, Minter Ellison (NT)

Originally authored by Leon Loganathan, Partner and Emma Farnell, Lawyer, Ward Keller Lawyers (NT)

Currently updated by Greg Brackenreg, Partner, Meyer Vandenberg Lawyers (ACT)

Originally authored by Greg Brackenreg, Partner and Jim Hartley, Lawyer, Meyer Vandenberg Lawyers (ACT)

Identifying the nature of a business dispute and the issues that might arise is the first step to resolution. As the circumstances and transactions from which disputes arise are varied, and do not necessarily fit neatly into legal concepts, some disputes span more than one category, and some categories overlap.

Sale of goods

The matters over which disputes commonly arise in respect of contracts for the sale of goods are:

  • the merchantability or quality of the goods;

  • the fitness for purpose of the goods;

  • manner and time of delivery of the goods; and

  • the seller’s title to the goods.

See Sale of goods.

Debt

Debt disputes involve money owed in connection with a contract for supply of goods or services, or both. Guarantees of the obligations of the debtor fall within this category. Money owed in relation to the loan of money and other financing transactions are dealt with under the heading of “Finance”. They are to be contrasted with claims for damages or compensation for loss.

Most often in question are the underlying liability for the debt, the calculation of the amount claimed and the date on which the debt falls due for payment.

See Debt.

Property

The basic elements of disputes about real property generally involve ownership, possession and use of the bundle of rights and entitlements which constitute real property. The rights and entitlements which constitute the property interests in a parcel of land may be held by several parties, each of which may have different objectives and expectations in respect of those rights and entitlements.

Broadly, disputes arise out of possession, being the entitlement or ability to control the property, and title, which has rights of control even when not in possession.

Contract, statute and general law define the rights which, when disputed, may require adjudication to enforce property rights.

See Property.

Intellectual property

This note covers disputes concerning the ownership and infringement of trade marks, copyright, confidential information, goodwill, patents and designs.

See Intellectual property.

Misrepresentation

Misrepresentation is a false or misleading statement made by one party to another which leads the second party to believe something which is not true and results in that party being induced to do something to its detriment, such as entering into a contract or paying money. The misrepresentation can occur when something is said or by the conduct of a party. In some circumstances, silence can amount to misrepresentation.

A claim for misrepresentation can be brought under common law or statute or a combination of both.

See Misrepresentation.

Finance

The type of finance available to individuals and to business organisations varies widely. It may be secured or unsecured. Examples include:

  • an overdraft facility;

  • commercial bills of exchange;

  • leasing finance;

  • hire purchase finance;

  • term loans; and

  • factoring or a receivables finance facility.

A default in the terms of finance by a business, particularly a default in payment, is the predominant trigger of a dispute concerning business finance. If the breach is not remedied, the financier may take steps to call up the loan and any security taken.

See Finance.

Construction

Disputes arising from the construction of buildings and other structures usually involve contractual claims that have attributes that are peculiar to the process of construction. The area is also heavily regulated by statute.

Aspects of building projects that typically lead to claims include the right to progress claims, defective work and materials, poor design, variations to the scope of work and delays.

See Construction.

Supply of services

Disputes in this area are similar to those that arise in relation to the sale of goods, with the added complexities of the concept of exercising due care and skill, and proscriptive statutory regulation in specific industries and professions.

Termination of contracts for the supply of services can be particularly difficult.

See Supply of services.

Corporations, partnerships, joint ventures and trusts

Business enterprises are usually formed through partnerships, companies, joint ventures or trusts. This note deals with disputes between those involved in one of these business structures.

Disputes may arise because there was no formal agreement or a poorly drafted or poorly thought through or uncertain agreement, or because the circumstances of the parties have changed or the terms of an agreement have been disregarded or otherwise breached.

Disputes may range from personality disputes, to disagreement about business goals or dysfunctional partnerships. Disputes can arise from projects which have gone sour or lost money.

The basic elements of disputes involving business structures are generally proprietorship, financial benefit and control/management.

See Corporations, partnerships, joint ventures and trusts.




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