Do you need to have a deeper understanding of the business litigation definition?
Figuring out the business litigation definition can seem more difficult than it really is. Basically, it just refers to business disputes that involve the courts. These disputes can range from disagreements over how to interpret a contract to the application of government regulations to business. The following is an explanation as to how business legal disputes often have parallels to real-life situations.
Cost-Benefit Decisions
Business litigation is very similar to real life in that it usually involves cost-benefit decisions. Litigation costs money, but getting justice is a benefit. So business litigation is a possibility when the benefits of winning the case outweigh the costs of not doing anything about the business dispute.
This is similar to real life in that many decisions depend on the benefits outweighing the costs. For instance, going to college is worth it if the benefit of getting a college degree (greater professional possibilities, including higher pay) outweighs the cost of not going to college (such as making close to minimum wage for the rest of your life).
There are some exceptions to this rule, such as when businesses fight in court for personal reasons or ideas based on principle. But this is also like real life, when people make decisions for emotional reasons, rather than logical motivations.
Sometimes It’s Personal
Most business lawsuits occur when the benefits outweigh the costs. But this logical principle isn’t always true. On occasion, there is high a level of hate or ill will among business owners and other entities, such as the government. This hatred can be so intense that business owners will spend thousands of dollars on litigation costs merely to beat the other side, even if it results in losing money. This can be out of principle, such as making a point or having a court prove them right.
This happens all the time in the real world, such as online feuds on social media or physical altercations over something silly, like a disagreement about the better sports team. Going to jail, having an embarrassing picture online or having a criminal record is not worth getting into a fight, but people do it anyway.
Disputes Come from Misunderstandings
Just like many disagreements in real life, a lot of business lawsuits originate from an honest misunderstanding between the parties. A classic example is the case of a buyer and seller of goods who enter into a business contract for the transport of those goods by boat. But a problem arises when each side has a different understanding of which boat would deliver the goods. This results in one side believing that the delivery of their items is several months late while the other side thinks the delivery is on time. Even though each side acted with the best intentions, due to a misunderstanding of which boat would carry the items, a business lawsuit began.
Do you need legal assistance for your business? Schedule your complimentary consultation with our legal team at Wilbanks Law Firm, P.C. to discuss the business litigation definition and how it applies to your business by calling [nap_phone id=”LOCAL-REGULAR-NUMBER-2″] now.