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Contracts govern our modern world. A contract is a legally binding agreement between two or more parties, obligating them to fulfill specific acts. A contract is considered valid when the parties fully understand its terms and conditions and agree to fulfill them. 

Many years ago, most binding contracts were verbal and sealed by a “handshake” agreement. But in the modern age, most valid contracts are written, signed, and sometimes notarized. That said, today’s contracts are far from perfect,

In this post, trusted attorneys at law from McCallum, Hoaglund & McCallum, LLP shares what you need to know about contract disputes: 

What Is a Contract Dispute? 

Contract disputes arise when there is a violation of the terms of a contract. This could be due to many reasons. Some contracts are poorly written, with vague wording open to different interpretations. For this reason, parties tend to adopt the most favorable interpretation they can read into it. There are other instances when a party is in clear violation of the terms and conditions of a contract. This is called a “breach of contract.” Either way, sound legal counsel is needed to help resolve the dispute as efficiently as possible.

Some of the most common types of disputes include: 

Business Ownership Disputes

Parties can disagree on the ownership of a business after a contract is signed. Any number of factors could cause the disagreement. For example: 

  • One party believes the other party is not honoring the contract as they agreed.
  • One party believes they were cheated or misled during the making of the contract.
  • One party believes they were not paid their share of the profits.
  • One party believes they should be the only owner of the business and wants their full share of the profits.
  • One party believes they are not given enough freedom to run the business as they see fit.

Lease Disputes 

Disagreements over rental agreements are not uncommon. Thus lease disputes are common. There usually is a debate over a section (i.e., the terms and conditions for renting a specific property).  

If you have a valid lease dispute claim, it is essential to see the dispute through. You may have a valid claim and don’t even know it. The longer you wait to seek advice, the harder it may be to collect any potential judgment or settlement you are entitled to.

Commercial Lease Disputes 

There are several reasons why a business owner may have a valid lease dispute, including breach of contract, unsatisfied lease conditions, or a dispute over the amount of money owed. 

The first step in resolving a commercial lease dispute is to contact a legal professional for a free consultation to discuss the details of the conflict. In some cases, it may be beneficial to get a real estate broker or leasing agent to help facilitate a solution. 

Construction Disputes 

Construction disputes are one of the costliest issues because construction workers have to work on-site to correct the mistake. This causes expensive delays. The best way to avoid a construction dispute is to hire qualified professionals when you need to start a project. 

If the mistake costs you a significant amount of money to fix, you may have a valid construction dispute claim, especially if the error was made by a professional. Many construction disputes involve a contractor’s failure to pay subcontractors, keep them on schedule, or deliver a finished product that meets their obligations. 

Employee Disputes 

Employee disputes can create many legal issues, especially if you decide to sue an employee for a “wrongful termination.” It can also be costly to hire a lawyer and go to court. 

Instead, it’s a good idea to resolve the issue without involving a lawyer. This can be done by having an attorney draft a well-written employment manual or an employee handbook. An employee handbook can help resolve many disputes before they escalate into full-blown court cases.  


Contract disputes are common in our modern world, but they are not always easy to resolve. This is where the expertise of a competent lawyer can be invaluable. If you have a legal issue that you need help resolving, start by contacting a trusted attorney at law in Birmingham, AL today. 

McCallum, Hoaglund & McCallum, LLP can provide you with the expert advice of a seasoned attorney at law from Birmingham, AL. Whether you need help drafting a contract or you’re disputing an existing one, you can get the best legal help from an experienced lawyer from our firm. Contact us today to set an appointment.