A contract dispute is a claim by one party to a contract that the other party failed to complete the obligations under the contract. The contract may be written or oral in most instances, and the dispute may or may not be over the payment of money. Some examples of contract disputes include a claim from a home seller that a real estate agent failed to properly market the property, a dispute with a contractor over the quality of work performed, or a dispute arising from a homebuyer that refuses to complete the purchase of a property.
What options do I have to resolve my contract dispute other than filing a lawsuit?
We generally recommend starting with a demand letter. A demand letter is simply a letter that outlines the reasons for the dispute and the amount of money you would like the other party to pay. The demand letter could also list certain actions you want the other party to take instead of requesting payment. The purpose of a demand letter is to see if there is any possibility of settlement prior to incurring the costs of litigation. It is not common for another party to simply respond to a demand letter with payment. Instead, the response is usually a counter offer for settlement.
If you have already received a demand letter from the other party, the next step is to respond to that letter. Depending on the dispute and your likelihood of success if it went to trial, the appropriate response may be a response letter or simply a phone call to discuss the matter.
How much does it cost and how do I get started?
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