Back to Insights Back to Insights
Owning and operating a small business is a dream come true for many people and undoubtedly brings extraordinary benefits, for example, you are your own boss which gives you the independence of choosing whom to do business with and what work they will do.

There are, however, downsides, one being that at some point in your professional life you are likely to face some type of commercial dispute. 

To help you understand the type of legal disputes that can occur in business, we have set out below the most common categories of commercial disagreements.

Contractual disputes

Commercial contracts are the glue that binds the business world together. With different parties committed to meeting their targets and objectives, however, not to mention various vicissitudes of life such as pandemics and natural disasters that can thwart even the most basic agreement, it is inevitable that parties can fall into disputes, especially if communication breaks down.

To mitigate the risk of business-related disputes ensure you have all your commercial contracts checked over and/or drafted by an experienced Contract Law Solicitor and have a comprehensive disputes resolution clause included in all your agreements.
>> For more information, read our quick guide on breach of contract.


No person can be an expert in all business-related matters or provide the necessary tools and supplies required to run an SME. Throughout your entrepreneurial life, you will need to rely on professional service providers and suppliers to grow your business. A major type of commercial legal dispute arises from another business or person who you have put your trust in being negligent and causing you damage (often in the form of economic loss). 

Business disputes frequently involve elements of contract and negligence law, therefore, it is crucial to seek legal advice at the first opportunity to ascertain the best steps to take to resolve the dispute quickly and cost-effectively.

Employment disputes

The third most common type of business dispute is employment disputes, which can cause small business owners to experience many sleepless nights. If you have a small team one employee’s unhappiness can spread through your entire workforce, damaging productivity and your reputation as a great place for talented people to work.

To avoid employment disputes make sure you have robust employment contracts in place and develop a relationship with an Employment Law Solicitor who can advise you on matters such as discrimination, unfair dismissal, and sick leave and pay.

In summary

The above are only snippets of the types of commercial legal disputes that can affect your business. If you need legal advice and representation regarding a business dispute or alternative dispute resolution, please contact us today.

Get legal assistance from LawBite

If you are facing a business dispute, our experienced Dispute Solicitors can help you resolve matters quickly as possible. We are committed to providing you with expert business dispute legal advice that is easy to access, cleared to understand and affordable.

Additional useful information

In closing

Nothing in this article constitutes legal advice on which you should rely. The article is provided for general information purposes only. Professional legal advice should always be sought before taking any action relating to or relying on the content of this article. Our Platform Terms of Use apply to this article.

Free legal support for businesses

The LawBite Free Essentials Plan acts as your very own legal assistant, ready to provide expertise and guidance on the common legal issues that SMEs and businesses face.

Free Templates
  • X 3 legal document templates
  • Drafted by our expert lawyers
  • New documents added every month
Legal Healthcheck Tools
  • Business-specific surveys
  • Understand how compliant you are
  • Checks in, GDPR, IP, Brexit and more
Resources, Webinars and Articles
  • Access to the latest LawBite events
  • Legal guides for businesses
  • Smarter business law videos