Sometimes, we'll advise you NOT to proceed with litigation – here’s why.
Picture this tragic (and all too common) situation. You’ve entered into an agreement and held up your end of the deal, but your counterpart breaches the contract. Filled with righteous fury, you want to take them to court for everything they’ve got. But the only proof of your contract is your memory of the verbal agreement you made. The outcome of your consultation with us determines that you cannot (or should not) proceed. Why?
It boils down to two things: Evidence and feasibility.
1. Evidence
Irrespective of whether you are right or not, it’s what you can PROVE that matters. If you enter into a verbal contract, as a “gentlemen’s arrangement”, it is difficult to prove the terms of the agreement in court. Sure, you likely agreed on a price for the goods, but what period was allowed for payment of that price? What court jurisdiction was agreed upon? What scale of legal costs was agreed upon should litigation be necessary? Did you record the audio conversation? No attorney can win your case for you without evidence.
2. Feasibility
The second, and most frustrating aspect is the feasibility of litigation. If your opponent has no assets to seize, obtaining a civil judgment against them may not be worth it. This is why we always advise our clients to control the money as far as possible – take upfront payment first, or at least periodic deposits. If your opponent has failed to make payment, take action immediately before they dissipate their assets further.
From day one, we have always emphasised preventative measures to our clients. If you’re entering into an agreement of any importance, have a proper contract drafted, or have us review the contract presented to you. It will save you tenfold in frustration and costs later. Set up your payment systems to give you leverage. And ensure you conduct thorough due diligence on any person to whom you consider offering credit.
Contact us for more information on proactively protecting your business. If you do not have the evidence to win a case, you will incur more legal costs, and may find yourself without effective recourse.
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