Contracts and Legal Disputes

Prepare for Disputes with Finely Calibrated Contractual Terms

In online commerce, contracts generally come into play on three levels. In relation to B2C transactions, companies enter into contracts with their consumers. The content of said contracts is determined by the terms on the company’s website. When drafting these terms, it’s important to give your company the best starting position in case of a potential dispute. As such, make sure the proper law is applied to your contracts with consumers. Another vital element is to cater for the limitation of your company’s liability vis a vis consumers.

Aside from potential consumer disputes, mind your service providers. An online business has to purchase multiple services from multiple parties. For instance, you may have to purchase marketing services from affiliate and ad networks. The content of said agreements is determined by the terms of your affiliate programs. You have to make sure your affiliate enters into terms which benefit you in case of a dispute. Since these are B2B contracts, you will have more leeway to construct your contracts to your benefit.

Another potential source of contractual disputes concerns disputes with banks and merchant acquirers. To obtain payment processing services, your company must enter into agreements with banks and payment service providers. These contracts often contain detailed provisions which must be met by your company. If you breach these terms, you can lose your payment solutions and temporary access to funds.

Upon a careful consideration of your goals and wishes, we will together draft detailed, protective and effective contracts for your company which cover all bases and cater for strong arguments in case of disputes.

Non-contractual Disputes. Mind the Media and Regulators

An online company’s consistent indifference to applicable laws can lead to serious disputes of a much higher order than simply a consumer complaint or a dispute with an affiliate about a payout. If you keep violating your legal obligations (for example your informational duties vis a vis consumers) you can trigger the interest of the Regulator or of the media. This can result in regulatory investigations or published articles. This will not only harm your brand’s name but - depending on the nature of the infringements - it can affect the good standing of your banking and payment processing accounts, effectively cutting off your cash flow.