Business disputes are a fact of life for companies of every size from start-ups and family businesses to established corporates. The difference between a dispute that gets resolved quickly and one that becomes expensive litigation usually comes down to two things: early action and a clear strategy.
This guide explains the most common types of business disputes in Australia, the legal framework that applies, and the practical steps you can take to protect your position.
Common types of business disputes in Australia
1) Contract disputes
Contract disputes often arise from:
- unclear or inconsistent contract terms
- late or defective performance (quality, scope or timing issues)
- non-payment or disputed invoices
- variations agreed informally (then denied later)
- termination disputes (including “wrongful termination” claims)
Tip: Most contract disputes are won or lost on the documents. Preserve the paper trail early.
2) Partnership and shareholder disputes
These disputes typically involve:
- decision-making and control (deadlocks, board fights, voting power)
- related-party transactions and alleged misuse of funds
- director duties and conflicts of interest
- dilution, valuation manipulation, or unfair buy-out tactics
- exit strategies and compulsory transfer provisions
If you’re a shareholder being shut out, the issue is often governance + information access as much as money.
3) Employment and contractor disputes
Common examples include:
- unfair dismissal or adverse action claims
- restraint of trade and confidentiality disputes
- commission/bonus disputes
- independent contractor “sham contracting” issues
These can escalate quickly if mishandled, especially where performance management and HR documentation is weak.
4) Intellectual property disputes
IP disputes can involve:
- trade mark infringement (branding, business names, logos)
- copyright claims (images, content, software)
- misuse of confidential information or trade secrets
- disputes about ownership of work product (employees/contractors)
Early steps often include takedown requests, evidence capture, and (where appropriate) urgent injunctions.
5) Supplier and customer disputes
Often involves:
- defective goods, delays or specification disputes
- chargebacks and disputed service quality
- warranty, limitation of liability, and indemnity clauses
- disputes over return/refund obligations and representations
Where consumers are involved, Australian Consumer Law issues may apply.
The legal framework for business disputes in Australia
Business disputes can engage multiple areas of law, including:
- contract law (common law + statutory overlays)
- Australian Consumer Law (in the Competition and Consumer Act 2010)
- Corporations Act 2001 (director duties, shareholder remedies, insolvency triggers)
- Fair Work Act 2009 (employment disputes)
- IP legislation (e.g. Trade Marks Act 1995, Copyright Act 1968)
The “right” strategy depends on what you want: money, control, an exit, or simply to stop ongoing damage.
Dispute resolution options: what works (and when)
Most business disputes resolve without a trial — but only if you choose the right process.
Negotiation
Best when the relationship is salvageable and both sides are commercial.
Key: a strong position paper + evidence + settlement range.
Mediation
A confidential process facilitated by a neutral mediator. Often the fastest path to resolution.
Key: preparation matters mediation is not “turn up and talk”.
Arbitration
More formal than mediation, typically binding, and often private. Common in commercial contracts.
Key: check the dispute resolution clause before taking steps.
Litigation
Court proceedings can be necessary where:
- there’s dishonesty or serious misconduct
- urgent injunctive relief is required
- the other side won’t engage meaningfully
- a legal precedent or declaration is needed
Litigation is powerful, but should be used strategically (including early interlocutory steps where appropriate).
How to handle a business dispute effectively
1) Identify the real issue early
Ask:
- What exactly has happened (and when)?
- Is this a performance dispute, a money dispute, or a control dispute?
- What outcome do you actually want?
2) Gather and preserve evidence
Collect:
- the signed contract and variations
- emails, texts, meeting notes and invoices
- bank records (where relevant)
- key timelines and decision records
Do not “clean up” accounts or documents once a dispute is brewing it can backfire.
3) Check the dispute resolution clause
Many contracts require notice steps, timeframes, or mediation/arbitration before court. Missing a required step can harm your position.
4) Make a strategic approach (not an emotional one)
A well-written letter of demand or “without prejudice” offer can resolve a dispute quickly but only if it’s grounded in evidence and the correct legal framework.
5) Get legal advice before you escalate
Early advice often saves money by:
- identifying the strongest cause of action (or defence)
- reducing risk from admissions or poor communication
- choosing the right forum (QCAT, Magistrates, District, Supreme, Federal)
- protecting you on costs and procedure
How to prevent business disputes
- Use clear, tailored contracts (not recycled templates)
- Document variations in writing (price, scope, timing)
- Set payment terms and enforce them consistently
- Keep good governance records (director minutes, approvals, conflicts)
- Protect IP and confidential information (clauses + practical controls)
A short legal review at the start is usually far cheaper than litigation later.
When to contact a business dispute lawyer
It’s time to get advice when:
- you receive a formal notice, demand, or solicitor’s letter
- payment is overdue and excuses are escalating
- you suspect misuse of funds or misleading conduct
- you’re being excluded from a company you own
- settlement talks are stalling or becoming threatening
- the dispute involves significant money, reputation, or control
At Boss Lawyers, we act in commercial and shareholder disputes across Queensland and interstate from early strategy and settlement to urgent injunctions and litigation where required.
Frequently asked questions
What is the best first step in a business dispute?
Preserve evidence, review the contract (especially dispute clauses), and get advice before sending emotional or informal messages that could be used against you.
Do I have to go to mediation before court?
Sometimes. Many contracts require mediation/arbitration steps first. Courts also often encourage (or order) alternative dispute resolution.
How long do business disputes take?
It depends on complexity and the other side’s approach. Some resolve in weeks through negotiation/mediation; litigated matters can take many months (or longer).
What are the risks of “going legal” too early?
If done poorly, it can entrench the other party, increase costs, or trigger counterclaims. If done strategically, it can stop damage and accelerate resolution.
