Some Ways to Settle a Commercial Litigation for Entrepreneurs

Dubai, UAE, 2021-Jun-16 — /EPR Network/ — Business and partnerships can go bad at any second because of the breaching of contracts (known as broken or failed promises). And this may lead to commercial litigation or contract agreement disputes. In this blog, let us understand the 6 ways to settle commercial litigation.

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With the current economic hardships and the future’s uncertainty, numerous business owners are bemoaning their unsecured debts. To settle their debt, they need to go through litigation and wage legal battles. This blog describes ways to resolve commercial litigation. We will specialize in what commercial litigation is and how it tends to be settled with legal advisors’ assistance. We will likewise examine about identify a suitable lawyer who can assist in determining commercial litigation.

What Is A Commercial Litigation?

Commercial litigation is the legitimate plan of action taken by one organization against another. Wherein a preliminary is had and judgment is delivered for the winning party. Partnerships in businesses generally involve promises to deliver service or product against money or similar considerations. When either party fails to stay the promise, the other may enforce the agreement or contract by filing a civil lawsuit.

To this day, commercial litigation remains the first method of resolving high-value and complex disputes in the UAE.

Top 6 ways to settle a commercial litigation

Commercial litigation remains the first method of resolving high-value and complicated disputes in the UAE.


A party seeking legal proceeding must consider the subsequent circumstances:

  1. Economic viability of the defendant,
  2. Likelihood of the defendant to abscond or flee.

The party may file a precautionary attachment application in court to make sure that assets will not be dispersed or dissolved by the defendant.


  1. Go Through the Terms Carefully

Before signing any contract, you must always read it carefully. And just in case of any dispute, go through the agreement again, and this time more carefully. Focus your attention at particular clauses or sections that describe anything about –

It is related to your dispute. And if you and your contractor have fulfilled the obligations.

The procedures that you need to follow in such a situation or while resolving your dispute.

Termination clause that might tell you how to end this contractual relationship should you plan to do so.

  1. Negotiation

It is always better that you negotiate terms along with your contractor before reaching to take legal proceedings. You need to means the particular areas where you think that that contractor has done wrong and provides a chance to respond. Many of the disputes are mere because of miscommunication and misunderstanding. Discuss with the contractor about the remedy actions that require to be taken to normalize the situation and see what he responds.

You can likewise formalize the dealings by introducing attorneys on both sides. It is the crucial method of settling differences. It is a back-and-forth communication with the simple objective of discovering an answer for the dispute.


There is no particular method or rules for the subsequent negotiation. Any party can choose and start a negotiation in a quiet way. Negotiation is started at any stage: i.e., before filing a lawsuit, while a case is in process, at the trial, or before or after the appeal is filed.

  1. Contact State And Local Agencies

Many state contractor agencies or similar trade groups have resolution programs for general disputes involving contractors. They may be a little biased towards the contractor, but they surely will be interested in any disputes concerning any of their members. After all, reputations are essential for business. Moreover, if you discover help and resolve the conflict, it would surely cut off your costs.

  1. Mediation

Mediation is nothing but a more legalized and structured form of negotiation. It is overseen by a third-party or independent person called a mediator. This is the next step if you fail to succeed in an agreement. A mediator helps identify issues from both parties because it has a fresh view of the dispute. This may help in settling the matter and going to a satisfactory agreement. The middle person is generally a judge or a senior attorney.

This progression helps by making both the Party see each other’s perspectives. It is a non-binding process; it must be bind when Party concur commonly and set up terms as a written record, and signs it.

Kinds of disputes where mediation can be most useful are –

Tenants and landlords

Family disputes like child custody or divorce

Business disputes

Probate issues

Employees and employers

Merchants and consumers

  1. Arbitration

The next stage of mediation. In mediation, the control is in both the Party’ hands, however, in arbitration, the force goes to the third party as an impartial one to require official conclusions.


Arbitration, alongside exchange and mediation, is essential for the choice dispute resolution (ADR) process. This progression is normally engaged with such circumstances wherein the capacity of Party to arrange has been exhausted.

Usually, contracts include arbitration clauses, especially in applications for a stock-broker account, pension plan, or credit card. In this step, both the parties are represented by the attorney. The arbitrator listens to both sides, studies their documents, testimony, evidence, and then decides. The interaction is equivalent to the preliminary, but only with limited appealing rights.

This process is non-binding, if the two sides concur, it very well may be a binding process. This is viewed as a basic advance as a prerequisite to litigation in most places. A single person can perform the method or a panel of three and is held in meeting rooms or hearing offices.


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Alqada provides the best Commercial lawyers in Dubai for bespoke legal advice on commercial legal issues and deals with all types of business dispute including breach of contract, judicial review, property, trust, and probate, IT disputes, corporate mergers, global restructuring, advertisement, and marketing disputes, or other investment disputes.

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