When Things Go Wrong: How Would Your Business Cope?
The invoice isn't paid. The supplier hasn't delivered what was agreed. A customer says the service wasn't what they expected.
Let's be honest, disagreements between businesses or with clients happen. But when they do, how well prepared is your business? Take our multiple-choice quiz to find out!
❓1. You have a disagreement with a customer. Where would you find the evidence of what was agreed?
A. Somewhere in your inbox.
B. In the contract, with supporting emails, specifications and invoices filed together.
C. Ask the person who originally dealt with the customer.
💡The answer? B
When an issue arises, being able to quickly put your hands on the relevant contract, specifications, emails and invoices can remove a lot of the initial stress. If the information is scattered across inboxes and systems, establishing what you both agreed to can become much harder than it needs to be.
❓2. Your customer says you haven't fulfilled your obligations, but you believe you have. What's the first thing to check?
A. What the contract says each party is responsible for.
B. What the customer expected you to deliver.
C. Who has the stronger argument.
💡The answer? A
Both parties can genuinely believe they are being reasonable. A clear, understandable contract gives everyone something concrete to reference. If the wording is ambiguous or open to different interpretations, resolving the disagreement becomes much harder.
❓3. A disagreement is starting to escalate. What should happen next?
A. Leave it to see if it goes away.
B. Immediately threaten formal action.
C. Follow an agreed process for raising and trying to resolve concerns.
💡The answer? C
Not every disagreement needs to become a formal dispute. Having a practical process for raising concerns, deciding who deals with them and trying to resolve them can help keep matters proportionate.
❓4. A customer wants compensation and your business wants to resolve the issue. Who can agree the outcome?
A. Whoever happens to be dealing with the complaint.
B. Anyone senior enough to make the decision.
C. Someone with clear authority to negotiate and agree a resolution.
💡The answer? C
It can be surprisingly easy for confusion to arise when nobody is quite sure who has the authority to make decisions. Clear lines of responsibility can avoid delays, mixed messages or someone unauthorised agreeing to something they shouldn't.
❓5. The disagreement has become heated. What's the best approach?
A. Stand your ground. You know you're right!
B. Step back and look at the facts and the commercial implications.
C. Respond immediately before the other party gets the upper hand.
💡The answer? B
When relationships become strained, it's easy for emotion to take over. Stepping back and looking at the facts can help ensure decisions are made in the best interests of the business and make commercial sense, rather than in the heat of the moment.
❓6. When might an independent legal governance perspective be useful?
A. Every time there's a disagreement.
B. Only when things have already gone badly wrong.
C. When the contractual position is unclear or the potential consequences are significant.
💡The answer? C
You don't necessarily need help every time there's a disagreement. But where contracts are complex, responsibilities are unclear or the potential consequences are significant, an independent perspective can help you understand the position and consider your options before matters escalate.
⭐How did you do?
If a few of these made you stop and think, it could be a sign that your business isn’t quite as prepared for a dispute as you thought. Why not use the questions as a quick checklist to see where you might need to tighten things up?
How Claric can help
Claric can draft a bespoke agreement tailored to your needs and, where required, negotiate on your behalf with your supplier/customer or their lawyers.
Do get in touch if you'd like a chat.
Richard Jenkins
024 7698 0613
Disclaimer: This article is for general informational purposes only and does not constitute legal advice.
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