“litigation, n. (17c) 1. The process of carrying on a lawsuit <the attorney advised his client to make a generous settlement offer in order to avoid litigation>. 2. A lawsuit itself <several litigations pending before the court>. …”[1]
“business. 1. A commercial enterprise carried on for profit; a particular occupation or employment habitually engaged in for livelihood or gain. 2. Commercial enterprises <business and academia often have congruent aims>. 3. Commercial transactions <the company has never done business in Louisiana>. See DOING BUSINESS. 4. By extension, transactions or matters of a noncommercial nature <the courts’ criminal business occasionally overshadows its civil business>. 5. Parliamentary law. The matters that come before a deliberative assembly for its consideration and action, or for its information with a view to possible action in the future. • In senses 2, 3, and 4, the word is used in a collective meaning.”[2]
To avoid litigation in business, one has to-
i. Understand the business one intends to go into. Do the study, background checks, etc.
ii. Be reasonably selective of the nature and type of business to go into, and also of the person(s) to go into business with.
iii. Do or have the necessary documentation done. Have an agreement, terms of engagement, terms of reference, memorandum of understanding signed, whichever one where necessary. Let the terms and conditions be spelt out. Especially, when engaging with others other than one’s self.
iv. Know your rights and responsibilities and try to know the other party’s rights and responsibilities as well. Understand and remember the commitments one has made.
v. Explore amicable means of settlement of disputes when such arises. They include – conversation, negotiation, mediation, arbitration, etc.
vi. Be willing to compromise if necessary.
vii. Consult or engage the professional(s) where necessary.
The above are the ways, which in my humble opinion, to avoid litigation in business.
Thank you.
Stephanie Orji lawyers at Heptagon & Associates, a full service law firm in Abuja, Nigeria.
[1] Black’s Law Dictionary, Ninth Edition, Thomson Reuters, 2009, page 1017
[2] Black’s Law Dictionary, Ninth Edition, Thomson Reuters, 2009, page 226