What is important to consider before you sue your contract party?
Anyone who has experienced the stresses of litigation – and the time, effort and expense involved – might come to the conclusion never again and that, in future, recourse to such action should be avoided at all costs. As was mentioned above, the parties to a dispute may have an overriding desire to preserve their business relationship and exchanging blows in a courtroom is not guaranteed to secure that objective!
Why try to avoid legal conflict?
• It is expensive, sometimes prohibitively expensive
• It is unpredictable
• Even if you win, it can be troublesome or even impossible to enforce the
judgement (especially in international disputes)
• It might cause a bad reputation for your company
• Since dispute settlement creates hostility, the business relationship is
(usually) terminated
• Corruption can cause ”lawlessness”
• It is difficult, particularly international litigation
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