Commercial disputes rarely arrive at a convenient moment. Whether it is a letter of demand, a supplier who has failed to deliver, a customer refusing to pay, or a partner walking away from an obligation, the instinct is often to fire back immediately. Resist it. The steps you take in the first few days can materially affect both the outcome and the cost of resolving it. Here is a measured way to begin.
1. Preserve everything
Before anything else, secure the record. Gather the contract, the correspondence, the invoices, and any emails or messages that bear on the issue — and do not delete or alter anything, even something unhelpful. A clear, complete record is your strongest asset, and destroying documents once a dispute is live can carry serious consequences of its own.
2. Read the contract carefully
The agreement usually sets the rules of engagement: notice requirements, dispute resolution clauses, timeframes, and limits on liability. Many contracts require you to follow a specific process — written notice, a period to remedy the breach, or mediation — before any formal action. Missing a step can weaken your position.
3. Say less, in writing, than you want to
It is tempting to send a strongly worded reply. But everything you write may later be read by a court or the other side’s lawyers. Acknowledge receipt, reserve your rights, and avoid admissions or threats you cannot stand behind. If in doubt, hold off until you have taken advice.
4. Assess the commercial reality
Not every dispute is worth fighting to the end. Weigh what is genuinely at stake — the amount, the relationship, the precedent, and the time and cost of pursuing it — against the likely recovery. Sometimes an early, negotiated resolution is the commercially sensible outcome even when you are in the right.
5. Get advice early
A lawyer can often resolve a matter through correspondence or negotiation long before it becomes litigation, and can tell you candidly where you stand. Early counsel is almost always cheaper than late counsel. This article is general information only and not legal advice — if a dispute is unfolding, seek advice on your specific situation without delay.