Contract disputes rarely happen because there’s no contract. More often, they erupt when the contract doesn’t match how the deal works in real life—scope creep, missed deadlines, payment confusion, or unclear responsibilities.
This guide helps entrepreneurs and business owners spot the most common dispute triggers before signing, sending, or starting work—so you protect your business, your time, and your relationships.
Important note: This article is general information, not legal advice. Every situation is different. If you’re about to sign a high-stakes agreement or a deal is already going sideways, get a contract reviewed.
Who This Is For
- Hiring a contractor or service provider
- Providing services to clients (agency, consultant, builder, creative, etc.)
- Entering a partnership, vendor agreement, or ongoing business relationship
- Signing a lease, purchase agreement, or any deal where timelines and money matter
1. Scope: Make the “What” Painfully Clear
- Clear deliverables (what you will and won’t do)
- Acceptance criteria (how “done” is defined)
- What’s out of scope
- Who provides what (materials, access, approvals) Red flags: Vague deliverables, open-ended support, no written acceptance process. Require written change orders for any scope shift.
2. Payment Terms: Remove Ambiguity Around Money
- Total price or rate (and what it covers)
- Deposit/retainer terms
- Milestone payments tied to deliverables
- Late fees and collection terms
- Refund policy (if any)
- What happens if the project pauses Red flags: “Net 30” with no invoicing schedule, no late payment consequences, payment tied to undefined “completion.”
3. Timelines: Define Deadlines and Dependencies
- What happens if the client delays
- How timeline changes are handled Red flags: Hard deadlines with no dependencies, “time is of the essence” used casually.
4. Change Orders: The #1 Dispute Prevention Tool
- Written change orders
- Clear pricing for added scope
- Defined approval process
- How schedule changes are handled Red flags: No pricing for extra work, “we’ll figure it out as we go.”
5. Termination: Plan the Exit Before You Need It
- Termination for convenience (with notice)
- Termination for cause (breach + cure period)
- What happens to work product, data, access
- Final payment obligations
- Confidentiality reminders Red flags: No termination clause, immediate termination with no cure period.
6. Dispute Resolution: Decide the “Where” and “How” Now
- Governing law (e.g., Tennessee)
- Venue/forum selection
- Mediation or negotiation before litigation (optional but smart)
- Attorney’s fees clause Red flags: Forum clause in an inconvenient state, unclear arbitration language.
7. Documentation Habits: The Contract Is Only Half the System
- Confirm scope changes in writing
- Keep approvals in one thread or system
- Summarize calls with “Here’s what we agreed” follow-ups
- Store signed versions and amendments together
Should You Get a Contract Reviewed? (Quick Self-Check)
- The deal is high-dollar or high-risk
- Long-term commitment (6–24 months)
- Penalties, personal guarantees, or exclusivity involved
- The other side wrote the contract and says it’s “standard”
- You don’t understand key terms
- You’re already seeing friction
Next step: Get a contract review before you sign. If you’re about to sign an agreement—or already in a disagreement—Collins Legal can help you tighten the contract, protect your leverage, and reduce the risk of a costly dispute later.
Contact a Nashville Business Dispute Attorney today!
