What are the common causes of business litigation?

Business litigation is typically caused by: 

  • Breaches of Contract: one business does not fulfill its responsibilities outlined in the contract, so the other business seeks legal action.
  • Intellectual Property Disputes: one business has created a new product and legally obtained exclusive rights to it. Another company, however, has recreated it, used it, or sold it without permission, which breaks the law and makes them subject to legal action. 
  • Partnership Disputes: when two companies partner together in hopes of achieving greater commercial success, it is always possible they will clash. If they have both signed a contract regarding their responsibilities and profits, each company must follow through; otherwise, they are subject to legal action.

Breach of Fiduciary Duty: when one company holds fiduciary duty, its job is to act in the best interest of its client(s). If it does not, their client (typically another company) can take legal action.

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