10 Tips for Resolving Commercial Agreement Disputes

There are many ways you might find yourself disputing a commercial agreement with another business or the government.  The Victorian Small Business Commission (VSBC) has a wealth or resources on the subject and can provide support to help navigate you through the process.

Common forms of commercial disputes

• a disagreement about a contract

• a supplier not paying on time

• a supplier providing faulty goods or services

• a website design not meeting the requirements of the business

• a small business unhappy about being excluded from participating in government procurement

• a disagreement between smash repairers and insurance companies about the cost of repairs

• repairs and maintenance, for example, a landlord not fixing a leaking roof

• a landlord withholding the security deposit at the end of a lease

• a landlord ignoring the six-month moratorium on commercial tenancy evictions and rent increase freeze currently in place as part of the Victorian government’s Commercial Tenancy Relief Scheme to combat the effects of COVID-19. Read our recent article on the Commercial Tenancy Relief Scheme.
  

With the six month moratorium on evictions and rent increases in place and scheduled to lapse by the end of September, now is the perfect time to resolve any issues with your landlord.

Commercial disputes can be difficult to navigate, and sometimes escalate to legal action. But before considering court action or dispute resolution with the Victorian Small Business Commission (VSBC), try this helpful guide from the VSBC and see if you can resolve it amongst yourselves.

Tips to help you resolve a dispute before mediation

1. Collect all relevant documents and all details of the dispute on record. This could be dates, times, product or service details, warranties, invoices, leases, photos, agreements, contracts or a list or diary entry of discussions with the other party

2. Highlight what is relevant to the dispute issue

3. Before contacting the other party, think about the outcome you want to achieve, including any compromises you may consider, for example, if you claim you are owed money, how much would you accept to settle the dispute?

4. Contact the other party, explain the problem and make suggestions for possible solutions

5. Listen carefully to what they say and put yourself in their shoes. Try to see their perspective even if it’s difficult to do so

6. Make a list of possible outcomes you would like to achieve

7. Keep communication about the dispute in writing

8. If discussions don’t work, write a formal letter of demand

9. If you are still unable to reach an agreement you may need to seek an alternative method to resolve your dispute that involves an independent third party like the VSBC

10. Lodge an application with the VSBC. Make sure you include all documentation of the attempts you have made to resolve the dispute. Here is a brief introduction about the mediation process

For more information on mediation and resolution services offered by the VSBC to help you resolve commercial disputes visit the VSBC website or call their hotline 13 87 22

Peter Forbes
Business & Industry Development Officer