When a Commercial Deal Starts to Go Wrong

EARLY STEPS BUSINESSES CAN TAKE TO MANAGE RISK AND AVOID ESCALATION

When a commercial deal starts to wobble, the way you respond early can shape everything that follows. 

While some businesses react too quickly by escalating the issue or making concessions without advice, a more careful approach can help preserve the relationship, protect legal rights and reduce the risk of the matter turning into a costly dispute. This episode looks at the practical steps businesses can take when trouble is brewing but before the relationship has fully broken down. 

VIDEO SCRIPT 

This is video five in our six-part series filmed across the Nullarbor — where I’m sharing the real legal risks that sit behind commercial contracts, and how to avoid them. 

We’ve pulled over at the Great Australian Bight — the Bunda Cliffs. If you haven’t seen it, it’s definitely worth the drive. The landscape is a lot more spectacular than you expect. 

Kind of like a commercial dispute, actually. 

Peter’s keen to get back on the road shortly.  I’ve promised not to gasp and grab the seat unless there’s active risk to life.  We’ll see how that goes. 

On that note, today I want to talk about what happens when a deal goes wrong. 

I’m not talking about a catastrophic breach or something that’s landed in court (yet). I’m talking about that awkward, uncomfortable stage — where: 

Something hasn’t gone quite to plan.

One party’s getting frustrated. 

And trouble is quietly brewing.

If you’ve been in business for a while, you’ll know exactly what I mean. 

Nothing’s escalated — but there’s definitely a shift in the tone. 

So how can you handle it in a way that prevents things getting worse? 

Here’s what I see often work: 

1. stay calm. 

Don’t rush to threaten breach or termination. That can lock people into positions they didn’t want to take. 

    2. preserve the commercial relationship. 

Even if the relationship feels beyond saving right now, showing the court (if it gets that far) that you acted reasonably, tried to resolve things, and didn’t jump to conclusions can be helpful. If the issue is deepening, it also helps to approach it with a clear dispute strategy from an early stage. 

    3. get advice early. 

Before you offer a discount, admit fault, or fire off a reactive email — speak to your lawyer. 

Because what you say now can shape how the whole thing plays out later. 

At Argyll Law, we often step in right at this point — when something is brewing but hasn’t yet exploded. 

We help businesses: 

• Frame the conversation 
• De-escalate tension 
• Put their legal position in writing without making things worse 
• And help to find a practical path forward, whether that’s negotiation, mediation, or just a careful reset 

Before a matter turns into a broader commercial dispute.

Because the truth is: 

Litigation is expensive. 

Conflict burns time and energy and commercial relationships — even the rocky ones — are worth protecting if you can. 

So if a deal’s going wobbly — and you want to protect your position without burning bridges — message me on LinkedIn or head to www.argylllaw.com. 

Handled the right way, this is where you shape the story. 

See you in the final video, where I’ll wrap up the series with what smart businesses do differently to create contract processes that actually support growth.