Most business deals don’t blow up overnight. They stall. They swerve. Deadlines pass. Replies turn vague. One missed deadline doesn’t mean chaos, but add last-minute changes, or unexplained payment delays, and it’s time to raise an eyebrow. Scope creep, where the other party starts expanding deliverables without adjusting compensation, is a common red flag.
A quiet partner can be just as concerning. If regular check-ins vanish or updates start arriving late and light on substance, don’t assume it’s just a busy week. Track the pattern. If it looks like the project’s sliding, it probably is.
Step One: Read the Contract. Again. Carefully.
Before firing off a frustrated email, dig up the contract. Find the clauses on deliverables, payment schedules, notice requirements, and performance standards. Check for any built-in remedies, like termination rights, cure periods, delay provisions.
The contract might include force majeure language that allows for flexibility during unexpected events. Or it might contain automatic penalties or extensions. What’s written matters more than what was discussed on a Zoom call six months ago.
Step Two: Start a Paper Trail
Start documenting issues immediately, even if you think it’ll get resolved quickly. Summarize phone conversations in a follow-up email. Keep records of missed payments, vague responses, or changed timelines.
The goal is to preserve facts. If things escalate, written records often carry more weight than your memory of a tense phone call. And if the other side is misrepresenting facts, your notes might be the cleanest version of the truth.
Step Three: Address It
Not every misstep is sabotage. Sometimes, a clear and specific message gets things back on track. Reference the exact section of the contract, outline what’s off, and ask for a response by a clear date. Keep it calm, neutral, and focused on solutions.
Step Four: Check the Dispute Resolution Clause
If the conversation stalls, your next move might already be in the contract. Many agreements include a dispute clause outlining how problems get resolved, like mediation, arbitration, or full-blown litigation.
Mediation is informal and collaborative, often helpful when parties want to keep working together. Arbitration is more structured and depending on the form, can be binding. Often, arbitration can be quicker than a court proceeding. Litigation is the last resort and typically slower, but necessary if things get serious.
Keep the Business on Track
Don’t let one messy contract pull down the rest of your operations. Start contingency planning. Line up backup vendors, clarify internal workflows, and keep your team in the loop. Nothing makes a bad contract worse than poor communication with your own people.
And don’t torch relationships unless you’re sure they’re beyond repair. Business circles are smaller than they look. Even when things fall apart, a measured response can protect your reputation down the road.
Talk to a Team That’s Been Through It
If the contract language is unclear, the stakes are high, or the other side is threatening legal action, it’s time to loop in a lawyer. Even one consultation can help clarify what your options are and how strong your position is.
Legal review doesn’t mean jumping straight to court. It means knowing whether the contract actually supports your position and how to push back in a way that won’t backfire.
If you’re dealing with a contract that’s unraveling, Melchert Hubert Sjodin, PLLP can help sort it out, without the drama. Call (952) 442-7700 to speak with someone who can cut through the noise and give you a clear next step.