Contract validity and clarity are essential for all employees and companies, especially independent contractors who depend on these documents to fulfill their jobs. Contract disputes come from disagreements or misunderstandings about these crucial documents, and failure to resolve them can lead to legal problems later. When you know contract worker laws in PA, you can legally protect yourself as you start your new job.
What Are Contract Disputes?
A contract dispute is when two parties disagree with a contract’s set terms and conditions. For a contract to remain valid, both parties must agree to and accept all terms and conditions. Disputes can happen at all stages of entering a contract, from consideration to after agreeing and signing. You can settle many disputes with the help of contract attorneys or over a lawsuit in court.
4 Types of Contract Issues
Individuals and corporations can encounter several types of contract disputes. When working as an independent contractor, understanding the different variations can help you determine how to approach them and protect yourself. Additionally, while most employees in Pennsylvania are considered “at will,” some employees, most often professionals or executive, enter into fixed term employment contracts.
1. Contract Breach
In a contract breach, one or more parties fail to uphold a part of the contract. Depending on the type of breach, it can invalidate the contract altogether. The two types of contract breach include:
- Material breaches: In this type of contract breach, one party doesn’t deliver the final goal that they promised by signing the contract. Whether they were supposed to provide a service or product, they breach the contract by failing to fulfill its purpose.
- Minor breaches: This type of breach leaves the main goal and contract intact, but one party breaks one or more of its terms and conditions. Minor breaches can include compromising quality, timelines or privacy. Many other types of contract issues can fall under this category.
Parties can settle both types of breaches in court. Having a good understanding of contract laws and partnering with a contract lawyer can help you determine what actions to take when facing a contract breach.
2. Non-Disclosure Agreement Disputes
Non-disclosure agreements (NDA) help protect the private and sensitive information of the parties working together under a contract. One party might have access to personal data or use industry methods they do not want others sharing with the public. An NDA can help protect that information and keep it safe by outlining precisely what the joining party needs to stay private and limitations on using or sharing it.
NDA disputes occur when someone leaks, shares or steals protected data. Because these actions can have severe consequences for the party issuing the NDA, they can sue the breaching party for damages.
3. Non-Compete Agreement Disputes
When agreeing to work for a company as an employee or independent contractor, your employer might ask you to sign a non-compete agreement before starting. These agreements often restrict you from starting a company that offers the same services and products, or from working for their competitors. You are also typically prohibited from stealing their clients or customers after you leave. This kind of agreement helps protect their business.
Non-compete agreement disputes will occur when the contractor or employee violates this aspect of their contract. These agreements will often have both a time frame stating how long this clause will last after leaving the company and a geographical component.
4. Misunderstanding and Reviewing
All involved parties hold the right to question and review the contract. Because parties need to understand and agree to everything outlined in the contract, clarifications and considerations might be necessary. These disputes can often settle with the help of lawyers who can offer you advice and determine how to best approach situations.
Some common areas you might ask for clarification or more time to consider include:
- Jargon: Technical or industry-specific terms can make it challenging to understand the intention of the contract or what they are asking of you. To uphold the contract, you need to understand it thoroughly. Asking for definitions might be a minor dispute, but it will strengthen your agreement later.
- Responsibilities and timelines: Contracts need to outline what your employers expect of you, so you know what you need to uphold when you start working. If your requirements or timelines are unclear, you might need to ask for clarification. A more explicit contract will help protect your work.
- Agreement: The contract is only valid when you agree to the terms and sign them. If there is something you disagree with, you can dispute it and negotiate. Taking the time to review each item on the contract carefully can ensure you and your employer reach an agreement you both can sign.
Contract lawyers can help employees and independent contractors navigate this stage. Whether you need help requesting further information or want to contest a part of the current contract, a lawyer can walk you through the proper procedures and help the parties reach an agreement.
PA Contract Worker Laws and Dispute Litigation
In Pennsylvania, you can ensure all contracts are valid by respecting the three phases of contract signing — offering, considering and accepting. Having and respecting each contract portion will allow the state to recognize it as a legally standing contract.
If your employer needs to dispute a contract or report a breach in court, they will need to provide:
- The contract and all documents: This evidence will help provide the basis for their claims. They will need to include all addendums and supporting documents. After signing a contract, store the copy somewhere you can easily access and refer back to.
- The proof of contract violation: To argue that someone has breached the contract, there needs to be evidence that one party broke the terms or failed to fulfill the contract. For example, if a company hired a contractor to install new flooring, they might submit evidence that the original flooring is untouched or that they put down the wrong materials.
- The evidence of damages it caused: Many breaches of contract result in damages to one party. Companies can bring these to court when settling contract disputes, whether they lose money or customers or hurt their reputation. For example, if a contractor steals and leaks private data, the business can cite the financial loss they experienced after securing their information again and losing customers.
Partner With Weisberg Cummings for Your Contract Needs
When you have a contract dispute that goes to court, trust a contract lawyer to guide you through the process. They are knowledgeable in the Pennsylvania laws about contracts and will help you gather the evidence you need to secure your case.
Weisberg Cummings, P.C. is an employment law firm with 40 years of combined experience handling employee needs, including contract disputes. We specialize in several specific types of contract issues, including severance and non-compete disputes. When you need support settling a contract dispute as an independent contractor or employee, the attorneys at Weisberg Cummings are there to help.
Contact us today for a free first consultation.
