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Detroit Business and Insurance Defense Law Blog

When contract disputes arise, do you have a plan?

It is important for Michigan residents to be able to take each other at their word. And yet, in the business world, it is often advisable not to simply rely on another person's word, but to have an agreement put in writing in order to preserve the parties' understanding.

Whether agreements are placed in writing or not, a contract dispute can develop between the parties. No matter how clear an agreement may sound, one side may interpret it differently or believe the parties had originally intended for something different to happen.

Can interfering with a contract lead to business litigation?

As discussed recently in this blog, an important part of finding success for many Michigan business owners may turn on having sustainable relationships with other business partners. Often times, these relationships are put down in writing in a formal contract. When disputes arise between different businesses as to the meaning of these contracts, it can lead to litigation.

However, contract disputes may extend beyond simple breach of contract claims, and even beyond the parties to the contract itself. It is not uncommon to have a third party come into play in these disputes, such as a third party that interferes with a contract for their own benefit.

What considerations apply in resolving client contract disputes?

Finding success for Michigan business owners often means being able to see the forest for the trees, despite an ever-changing landscape. This principle is also important to keep in mind when disputes arise between businesses, or between businesses and their clients.

For example, businesses may have a number of client contracts in place with different individuals or entities. Frequently, these contracts do not involve a one-time transaction. Instead, the business and the client develop a relationship over the months and years, and this relationship is a continuing source of income for the business.

Company now one of largest in its industry after acquisition

In order to create a successful business, it is vital that Michigan business owners set goals they want to achieve. These business goals are part of the overall vision for the company's future, which makes it all the more important to set the right goals and execute on this corporate strategy.

For many companies, growth is a prime objective, whether it be growing demand in the local existing market or expanding the company's operations to other locations or markets. In order to accomplish this growth, some companies may find that acquisitions of other companies are the key.

Helping you plan and form a new business

Whether you are seeking to start a new business or purchase a business in Detroit, there are various business formation and planning steps to take. No matter the size of the company or the plans you might have for the future, every business needs to go through a process to ensure it was properly formed. This does not only protect the business itself but also those owning, operating, representing and working for the business.

At Kauffman, Payton & Chapa, we understand the time, effort and investments business owners put into forming and running a business; therefore, our legal team is dedicated to serving and protecting these interests. Our law firm handles legal matters that could impact a business owner from the day of formation until that business is expanded or sold.

Parties may have rights when contracts are breached

Collaboration is often necessary for finding business success. Many Detroit-area businesses choose to work with other entities in order to secure support for their operational and performance needs. However, when businesses look outside of their own walls for services or support they must ensure that they know exactly how their relationships with their collaborators will be formed.

One of the main ways that businesses work with others is through securing contracts. Contracts form a system of legal expectations between parties that are based on the offer and acceptance of particular terms. Contracts can be used to provide businesses with a wide variety of goods and services and each contract should be particularly suited to serve the interests of those subject to its conditions.

What due diligence is necessary prior to a merger?

When there is a major transition in play for Michigan business owners, it is important for those involved to do their homework. This concept is not only advised, but an essential part of pursuing a strategy of mergers and acquisitions, which was discussed last week in this blog.

The buyer in merger and acquisition must do a substantial amount of due diligence, which essentially means the buyer must know what it is buying. It is not only important to know this information to discover the value of the new company, but also to know what liabilities and obligations might exist.

Detroit brewery expands through mergers and acquisitions

There is nothing quite like the satisfaction Michigan business owners receive after achieving success or reaching a major milestone. An immense amount of planning, hard work and dedication go into the business's objectives, and it is rewarding to see these strategies pay off for the company.

For example, businesses often make it a goal to expand their operations. This is the case for a local Detroit company, Atwater Brewing, which is in the craft brewing industry. The brewery has spent $2.5 million upgrading its brewing equipment over the past 18 months, as it attempts to increase its capacity and become a player in the ever-expanding national craft beer market.

Do you know what to look for when negotiating a contract?

Even the seemingly smallest of things can turn out to have major consequences for Michigan businesses. For instance, a minor mistake in production can lead to significant financial repercussions down the line. In other cases, some small infractions can contribute to the break-up of an important business relationship, costing both sides time, money and resources.

Recently, this blog has discussed how this same principle can manifest itself when it comes to contract law. Whether in real estate contracts, employment contracts or other kinds of contracts, there are often provisions in the agreement that may be glossed over at first glance and which may not seem all that important. And yet, these seemingly minor provisions can turn out to be very significant if a contract dispute arises between the parties.

What importance does a choice-of-law clause have in a contract?

Before any game is played, one of the first steps that must be determined is to lay the ground rules. These rules will determine how the game is played, and, in some instances, they can end up determining who wins.

In some respects, the legal system is similar. Michigan residents who become involved in litigation need to know first what rules apply in the case, as these rules can end up determining who will win the lawsuit.

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Kaufman Payton & Chapa
200 Kaufman Financial Center
30833 Northwestern Hwy.
Farmington Hills, MI 48334
Phone: (248) 626-5000
Toll Free: (800) 763-4818

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40 1/2 East Ferry Street
Detroit, Michigan 48202
(248) 626-5000
(800) 763-4818

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161 Ottawa Avenue NW
Grand Rapids, Michigan 49503
(616) 459-4200
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