The perfectly simple answer is Yes.
Startup companies that assume from Day 1 that commercial disputes may well arise with suppliers and customers soon are best placed to resolve those disputes and protect their company’s position.
Whilst we don’t recommend you start any working relationship assuming that a dispute will entail, its prudent to place yourself in the best position to resolve that dispute by the following Top Tips:-
1. Ensure you have a contract in place with your Supplier / Customer and understand the terms and conditions behind the agreement.
2. Have a dispute resolution clause that best works for your business and perhaps encourages a dialogue before litigation such as a mediation clause.
3. Ensure you have a document retention policy so you can locate quickly all relevant documents.
4. Beware “informal” emails that can sometimes come back to “bite you” if they are not privileged from disclosure.
5. Work out your commercial objectives for any dispute and prepare a plan for resolving the dispute as soon as possible to avoid escalation.
6. Think laterally and creatively on how a dispute can be resolved such as promise of new business / cancelling an order / joint communication / cancelling an invoice etc.
Litigation takes up your management time , can destroy a relationship and of course can be expensive.
Managing your disputes in a timely manner avoiding escalation where possible and early resolution has to be in your commercial best interests on most occasions !