Preventive Checklist: Stop Disputes Before They Start
- Keep all contracts in writing — never rely solely on verbal agreements.
- Review partnership and operating agreements annually.
- Document all changes to business relationships in writing.
- Use clear payment and performance terms in every contract.
- Keep correspondence professional and organized.
- Seek early legal advice before sending or responding to a demand letter.
Common Mistakes to Avoid
- Responding emotionally to a dispute instead of strategically.
- Failing to document communication or performance issues.
- Ignoring early signs of nonpayment or breach.
- Signing settlement agreements without legal review.
- Letting pride or frustration outweigh business judgment.
The sooner a business seeks guidance, the more options remain on the table.