What Courts Hear Contract Disputes

For many people, the court system might as well be a maze. When it comes to a business dispute over a contract, the court system works in a particular manner.

What Courts Hear Contract Disputes?

The court system in the United States actually makes a lot of logical sense if you understand the terminology used. Well, if you are an attorney. The system is broken down by subject matter and then categorized by objective issues like the amount of damages being claimed. Common court branches include criminal, civil and family law divisions to mention just a few.

What court hears business contract disputes? Contract issues are covered under a set of laws known as civil law. If you have been in a lawsuit, you know it is rarely civil! The term, instead, refers to the matter being monetary in nature. At its root, the dispute has money at issue. Contract disputes fall within the business law and civil court jurisdiction. Ah, but there is more.

While civil courts hear contract disputes, the specific court is determined by the amount of money at issue. The exact amounts differ by state, but generally there are three levels. Small claims civil courts decide matters under $5,000 or so and you are not allowed to use an attorney. These are the disputes you see on television. Municipal civil courts usually hear contract disputes that have monetary values above small claims levels but below $25,000. If the claim involves an amount over $25,000, then it is heard in superior court.

Before heading off to court, it is important that you first read the contract in question very closely. Most contracts these days contain arbitration clauses. Arbitration is an effort to resolve things without taking up the time and resources of the court system. If you have such a clause, the parties typically agree to have a retired judge here the dispute and render a judgment in favor of one party.

Business contract disputes happen each and every day. Civil courts are usually going to handle them, but make sure you to check for arbitration clauses.

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