Understanding the Role of a Contract Litigation Lawyer in Business Disputes

  • February 10, 2025

A contract attorney who handles complex agreements can best protect your business interests.

A gentleman’s agreement is an old-fashioned way of doing business. In this scenario, two people make an informal arrangement that governs their dealings. It’s not legally binding and falls far short of the complex, legally binding contracts of modern fintech.

Because merchant processing agreements can be highly detailed and result in significant consequences for both parties, it’s essential to get a contract review from an experienced payments attorney. The right contract attorney can also represent your interests in the event of a contract breach, so your business stays protected. 

Responsibilities of a Contract Lawyer

A contract lawyer is your first call when you need to establish, review, or dispute a formal legal agreement. At every stage, the lawyer provides recommendations to protect your business interests. This involves starting the business relationship off right with a thorough legal agreement that addresses all aspects of the deal, monitoring contract negotiations to protect your interests, and providing legal counsel if the contract is breached. 

Merchant processing agreements and other fintech contracts involve detailed clauses that are not familiar to every contract attorney. Because businesses risk the loss of reputation and financial consequences if they are party to an unfavorable contract, the choice of the right contract attorney is essential. You should have a lawyer who knows this industry and knows where disputes commonly arise. They not only highlight potential problems but also propose ways to fix them.  

Evaluating Contract Terms

At the drafting stage, contract review attorneys evaluate clauses and terms to see how they benefit their client. For example, if a contract clause could leave their client without adequate safeguards, a contract lawyer can negotiate for more favorable terms. It’s important for a company to choose a contract attorney who not only understands the nuances of these contracts but is also a skilled negotiator, as they will be responsible for furthering their client’s best interests.   

A merchant processing agreement should include critical terms, such as per-transaction payment rates, chargeback procedures, security information, and data processing standards, among other things. A contract can also specify transaction limits, which can put a cap on the amount of money your business collects in a day. Global Legal Law Firm has in-depth experience with these contracts and can advise on the potential risk of any specific clauses. 

Identifying Breaches

Businesses seek the advice of breach of contract lawyers when they suspect the other party has not upheld their side of the bargain. The contract lawyer can hear the facts of the case and review the contractual language. If the lawyer determines a breach might have occurred, they can help the client determine and proceed with the next steps. Breach identification also takes place when it’s the lawyer’s client who might have violated the agreement. The contract lawyer can determine if there was a breach and how to defend against those claims.  

Because of the potential for a breach to turn into a legal dispute, it’s important to work with a contract attorney who is also an accomplished litigator.

Advising on Courses of Legal Action 

The contract lawyer can recommend ways to resolve a dispute. Potential options include direct negotiation with the other party, arbitration with a third-party decision maker, or going to court. The contract lawyer will advise on the course of action that will best serve the client’s interests. Sometimes, a case starts off in one forum, such as direct negotiation, but moves to another, such as arbitration or court. 

Because each of these forums requires different advocacy skills, it’s important to work with a contract attorney who is experienced in all ways of resolving contract disputes. Each forum has its own set of rules that impact how a party can assert or defend its legal rights. 

Benefits of Working With a Contract Lawyer

Some business leaders might choose to negotiate a contract in the absence of legal advice, or they might work with an attorney with limited fintech experience. Both scenarios can put the business at a significant disadvantage. The business is better served by working with a contract attorney who deals regularly with complicated merchant processing arrangements.

Protection of Business Interests

An attorney can reflect upon the language in a contract and see how it might expose your business to risk. The lawyer recommends changes to the contract during the drafting stage to minimize that risk. What appears to be a good deal at first glance might be in place for only a short period of time or have a hidden downside.  

The attorney can also identify when a deal might be bad for the company in ways the business owner might not anticipate. For example, a revenue-sharing arrangement might cost more in the long run than a fee-for-service. These kinds of discussions are central to the work of contract attorneys. Unlike a general corporate attorney, a lawyer experienced with merchant processing agreements and the niche world of fintech has the knowledge and experience to identify these risks. 

Ensure Compliance With Contract Law

Contract law involves a range of principles that govern what constitutes a legally enforceable agreement. If a contract fails to comply with state or federal law that governs these types of agreements, it might not be valid. A party with an invalid contract will not receive the benefits of the contract or the protections it provides in the case of a breach. In addition to legislation, contract attorneys can guarantee that the agreement follows several key principles, such as mutual assent and a clear understanding and acceptance of the terms. 

In fintech, regulatory and data security issues can impact the validity of an agreement. A contract attorney has a comprehensive understanding of these issues and can advise business clients appropriately. 

Work Toward Efficient Resolutions

Conflict resolution is a central responsibility of a contract lawyer who represents clients in disputes. Complex contracts often have many moving parts. An experienced lawyer can remain attuned to each of these parts in order to employ strategy to reach the best result for their client. When a business works with the right contract attorney, they are able to minimize the financial and reputational risk exposure of the business. Because businesses typically lack the legal experience to work with these contracts, they might leave themselves open to unnecessary risk by not securing the right legal counsel. 

FAQs About the Role of a Contract Lawyer

Here are answers to some of the most frequently asked questions about contract lawyers and their role in business dealings. 

How much does a contract lawyer cost?

A contract lawyer will discuss their fees with you at the initial meeting. You will agree upon the scope of representation and sign off on the fee scale before work begins. During this initial meeting, you have the opportunity to ask questions. You’ll go over how and when the firm invoices for services and the payment options available. Typically, a contract lawyer bills by the hour for work done on the file. Meetings, contract reviews, and litigation preparation are part of a non-exhaustive list of billable services. The firm might also bill for expenses that are directly linked to the legal work.  

What does a contract lawyer do?

A contract lawyer drafts and reviews legal agreements. They also interpret and advise clients on legal agreements drafted by others. Advising might include suggesting changes to contract language to better protect client interests or steering their clients away from problematic proposals. They communicate with the other contract party on the client’s behalf in order to negotiate and implement those changes. In the event of a contract dispute, a lawyer represents client interests in courtroom litigation, arbitration, or mediation. A single case can go through a few different forums if the dispute is complex and not easily resolved.

What is the difference between a contract lawyer and a litigation lawyer?

A litigator represents clients in disputes. This often involves going to court to have a judge decide how to resolve the conflict. However, it might also mean going to a private dispute resolution forum like mediation or arbitration. Litigators often start by trying to resolve a dispute directly with the other contact party. If necessary to protect client interests, they can take the dispute before a third-party decision maker, such as an arbitrator or judge. While all litigators are lawyers, not all lawyers are litigators. 

What type of attorney handles contract disputes?

Some contract lawyers only engage in transactional work. This means they draft and review contracts but do not advocate for clients in the event of a dispute. Generally, only litigators handle disputes. You can work with a transactional contract attorney to draft and review a contract. However, since a dispute might arise, it might be best to hire a litigator lawyer so you don’t have to hire a different lawyer to advocate for you in court. 

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