How to resolve commercial disputes

Checklist

1. 1 Review what was agreed, and how clear the agreement was.
2. 2 Clarify how the other party has failed to live up to the agreement; consider to what extent you may have contributed.
3. 3 Assess the loss you have suffered as a result; consider any loss they may claim to have suffered.
4. 4 Collate evidence (eg written contracts, correspondence and witness statements).
5. 5 Try to negotiate an amicable resolution; keep evidence of negotiations including copies of letters and notes on conversations.
6. 6 Assess the other party's ability to pay, for example, by running a credit check (including records of outstanding county court judgments).
7. 7 Take legal advice unless the dispute is straightforward, represents a relatively small amount and runs no risk of a significant counterclaim.
8. 8 Assess whether you have a strong case - how clear the legal position and evidence are - and the risks of a counterclaim or losing in court.
9. 9 Clarify the costs and timescales involved in taking the recommended form of legal action; decide whether it is worth pursuing.
10. 10 Consider how far you are prepared to compromise either by accepting stage payments or partial payment for a quick resolution.
11. 11 Either abandon the claim, or inform the other party in writing of your intention to take legal action; follow the appropriate procedure.
12. 12 Track progress and legal costs as the case proceeds.
13. 13 Continue to be prepared to compromise; accept any reasonable offer to avoid further delays and disruption and the risk of court action.
14. 14 After a successful court case, be prepared to enforce judgment to obtain payment.

Cardinal rules