Most commercial contracts will have a dispute resolution clause. This clause will outline the steps the parties are to take if a dispute arises.
When construction defects arise, owners must decide whether to allow the original builder to fix it. The primary concern is whether the recipient of the building work is acting unreasonably by not allowing the builder to remedy their defective work.
Indemnity clauses effectively allocate risk between the parties. The danger, however, is when the clause is more extensive than the party thought when they entered into the agreement.
Where there is a breach or repudiation of a contract giving rise to a right to terminate, the innocent party has a choice to either terminate or proceed with the contract.
A restraint of trade is a clause that restricts one party conducting business with another person or business not a party to the agreement. These restraints are commonly found in certain types of contract, for example, the sale of business or franchise agreements.