Seen by many as simply “the cost of doing business,” contract disputes are a common occurrence across nearly every industry in the U.S. While most contracts are signed with the expectation that all parties will honor the terms for a set duration, things don’t always go as planned. When one party fails to meet their obligations, it can result in a breach of contract — leading to costly legal conflicts.
Below, we explore seven of the most common types of contract disputes today. These examples reflect everyday agreements signed by business professionals across the country.
First on the list: commercial lease contract disputes. These conflicts often arise due to unclear language or missing provisions in lease agreements between business tenants and property owners. A common point of contention is an unlawful detainer—an eviction action that may demand up to 12 months of rent be paid immediately upon the tenant’s departure. Landlords may pursue full payment even when the contract doesn’t explicitly outline such terms. In other cases, tenants may inadvertently violate lease terms due to confusion or lack of clarity in the agreement.
Non-compete clauses are another frequent source of contract disputes, particularly in industries where intellectual property or client relationships are at stake. Employers may require staff to sign agreements barring them from working with competitors for a certain period after leaving the company. Some non-compete contracts go even further, restricting employees from working in the same industry altogether. These non-compete disputes often lead to legal challenges, especially when the restrictions are overly broad or limit a person’s ability to earn a living.
Sale of goods contracts, governed by the Uniform Commercial Code (UCC), are among the most flexible—and most frequently disputed—agreements in business. These contracts are commonly used in wholesale, supply chain, and liquidation deals. Disputes often arise when products arrive significantly not as described (SNAD) or fail to arrive at all. While some of these contracts offer minimal performance guarantees, others are enforceable when clear promises are made. Breaches involving misrepresented products or failure to deliver are often grounds for legal action.
Non-disclosure agreement disputes occur when one party violates the confidentiality terms agreed upon in writing. These contracts are designed to protect sensitive business information—like trade secrets, proprietary data, or client lists. A common scenario involves an employee or partner who discloses protected information to a competitor or on public platforms, whether intentionally or by accident. Breaching an NDA can lead to serious legal consequences, especially if the leaked information causes measurable harm to the protected party.
Consumer contract disputes often arise when individuals sign agreements for goods or services and feel that the business failed to deliver as promised. These can involve gym memberships, home service contracts, financing agreements, or retail purchases. Disputes frequently revolve around unclear cancellation policies, hidden fees, or failure to provide the agreed-upon product or service. In some cases, consumers may not even realize they entered into a binding agreement. These disputes can lead to chargebacks, small claims litigation, or complaints to consumer protection agencies.
Today’s interconnected world relies on contracts between various businesses around the globe to operate efficiently. Your website hosting? That’s a company contract. Just took on several new clients for your writing company? There was probably a contract drafted for that. Everywhere you look, businesses are contractually involved with another proprietor in some manner.
When one party breaches the agreement, and calculable losses start mounting, they may be civilly liable for those damages provided the language in the contract was clear. For example, if you’re promising to lease 100 GB of cloud space to another business each month, but only provide 50 GB, you’ve breached a company contract.
By definition, material breaches are the outright refusal to follow the terms set within the contract – literally all of them. It calls to question whether the contract should’ve been formed to begin with, let alone signed.
The damages caused by material breaches could amass millions or more. These are serious, and should be treated as mission critical if you’re accused of causing irreparable differences so grave the contract is thematically useless.
The most interesting type of contractual disagreement isn’t a contract at all, but falls under contract law. When two parties have a written obligation to each other, and an outside party attempts to damage that relationship by interfering with one or all components of the contract, a tort claim can be made by either or both parties damaged by the interference.
One example would be if the NBA had a contractual obligation to a major athletic clothing line, but the NFL decided to “entice” the clothier away by making outlandish offers or promises. In this scenario, the NFL committed tortious interference and would be liable for damages the NBA suffered.
Language is as important to contracts as the people who will be bound by their terms. Properly written contracts with language each party can clearly understand could stop many contract disputes before they start. Of course, one cannot predict where and when another party will breach the contract, but with clear and concise wording, any sensible party would be hard-pressed to blatantly deviate from the terms set forth.
Due diligence is another key component of successful contracts. Simply put, do your homework and choose wisely who you adjoin signatures with on paper.
If you’ve done your part and another party breached their end of any contract you signed with them, Grisham & Kendall offers assistance with TROs, pre-litigation, and other forms of contract defense.
We have been helping our neighbors in both Houston and Dallas, as well as throughout Texas, with business law cases such as contract dispute cases since 2000, and we are ready to help you as well. To learn more about how our breach of contract attorneys can help you with a contract dispute or any other issue, contact us today at (214) 308-2027 to discuss your claim.
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