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Common types of commercial litigation

Commercial litigation arises when a dispute occurs between one or more parties in a business entity, such as a partnership or a corporation. In commercial disputes, one of the parties is suing the other due to a breach of contract or perhaps one party is seeking compensation.

There are many categories of commercial litigation. Some have been explained below;

Breach of contract

A contract is legally binding, with specific requirements that all parties involved must meet. If one party fails to adhere to and apply the steps and procedures as stipulated in the contract, it results in a breach of the contract. The party violating the agreement is liable to be sued by the other in this situation.

Intellectual property disputes

Trademarks, copyrights, patents, formulas and inventions are all considered intellectual property. Only the creator has ownership rights to their intellectual property unless permission has been granted for use by another party. However, if another party uses an IP without consent from the creator a dispute may arise. The party using the IP illegally can face lawsuit allegations.

Customer lawsuits

A company or a business organization may be participating in unscrupulous behavior, like deceiving consumers through false advertising or providing defective products. In cases like these or those involving breaches of warranty, consumers may unite and take legal action against a business.

Non-disclosure disputes

Some jobs may require employees to sign non-disclosure agreements that establish duties, terms and conditions during the employment period. The contract may require the employee to protect vital information or trade secrets of the company. It should also require the employer to provide an enabling work environment as well as fair wages and working hours. If either party acts outside the agreement, they can risk a lawsuit.

Antitrust and unfair competition

As much as competition is prevalent in business, a corporation may go overboard in an attempt to outdo another through acts of price-fixing, market allocation, price discrimination or attempted monopolization. If they breach competition regulations, the party involved can face a lawsuit.

Business torts

A wrongful action can put a business in severe financial harm. This may be to make the other party lose profits, lose competitive advantage, lose market share or even destroy their reputation. These acts can stir up disputes between two competing businesses, leading to a court case.