Mediation Services in Commercial Law
Commerce plays a critical role in the economic development of a society. Worldwide, Kenya included, laws and regulations have been put in place to protect businesses that enter into agreements with others and equally stipulate the modalities of resolving disputes that may arise in the course of business. One of the greatest challenges that hinder business progress is unresolved commercial disputes. If left unresolved, disputes interfere with business interests and achieving the business goals. It also exposes the business to loss, both financial loss and loss of good customers/clients.
What is a Commercial Dispute?
A commercial dispute is a conflict or a disagreement between persons in a commercial relationship. The conflicts mostly arise from failure by one party to perform the contract terms and conditions. Particularly, poorly drawn contracts present an avenue for disagreements because the parties rights and obligations may not be clear.
Examples of Commercial Disputes
Commercial disputes are diverse because they may arise between individuals and business entities. They also vary in size and complexity. Commercial disputes may include:
Supply Chain Disputes; These may include failure to supply ordered goods or services, non-payment of agreed fees or purchase price, supply of faulty goods or poorly performed services which don’t meet the agreed specification.
Shareholders/Directors/Partners Disputes; Common disputes between shareholders, directors or business partners include failure to perform obligations, breach of fiduciary duty, misuse of business funds, misunderstandings on the role of each party, division of business funds or assets, poor performance by either party, fraud, subjecting the business to risks, breach of trust etc.
Fiduciary Disputes; Parties in a business relationship undertake to act in good faith for the best interest of their businesses failure to which disputes are likely to occur. Failure to act in good faith may include disclosure of confidential information, non-disclosure of material facts during negotiations and failure to comply with terms of a contract with an intention of frustrating the contract.
Real Estate Disputes:Real estate disputes involve disagreements related to property contracts. They include unfulfilled terms of a lease agreement, conflict between developers and property owners, landlord-tenant conflicts, breach of loan agreements where a property has been charged by a financial institution, damage to property etc.
Intellectual Property (IP) Disputes; IP disputes include IP infringements of copyright, patent and trademark licenses, passing off, IPownership, IP misuse etc.
Why Should I Resolve Commercial Disputes Through Mediation?
The mediation process involves assigning a neutral third party or“mediator” to work with the parties in an attempt to reach an agreement or compromise. The process is faster, confidential and besides resolving the disputes it helps the parties to retain their relationship and continue doing business together. It is also flexible and cost efficient.
Feel free to contact us for the resolution of your commercial law disputes through mediation with Accord Mediation Chambers.
