Vendor Disputes
A poorly written contract is often the biggest obstacle when the association gets into a dispute with a vendor. For example, if the association terminates its landscaping company, will the association be required to pay the landscaping company for the duration of the contract? How will any disputes be handled - by arbitration or through the court system? Does the contract include a liquidated damages provision? Does the contract provide for an opportunity to cure any default under the agreement? If the association ends up in from of a Judge, has the association properly documented any breach on behalf of the landscaping company?
Prior to terminating any vendor, your contract with the vendor should be carefully reviewed to ensure the association is adhering to the terms of the contract. More importantly, the association should ensure that its contracts with vendors properly address potential disputes and the manner that these disputes will be resolved. A well written contract can avoid many disputes with vendors in advance and ensure that the association is well protected in the event any disputes arise.