Commercial Disputes

What do we offer in this area?

• Reviewing contracts, correspondence and commercial documents
• Identifying claims and defenses and preparing dispute memoranda
• Negotiating a settlement or representation before the competent court

The scope of work and required documents are determined after reviewing the matter and agreeing on the engagement.

When does a sole trader need a commercial lawyer?

The owner of a sole proprietorship or shop, or a partner in a small company, usually faces a dispute on their own, without a legal department to handle it. The role of the commercial lawyer here is to organize the file and define the claim or defense precisely before the dispute turns into litigation that drains time and effort. Among the recurring cases:

• A supplier who received payment and did not deliver the goods, or delivered them in breach of what was agreed
• A business customer who fell behind on accumulated invoices
• A dispute among partners over profits, management, or a partner's exit
• Terminating a franchise, distribution, or equipment lease contract before its term

The Commercial Court: Will Your Dispute Be Heard There?

The Commercial Court hears disputes between merchants relating to their commercial business, disputes between partners, and certain claims brought against a merchant under their commercial contracts, in accordance with the standards set by the Law and its implementing regulation. If the other party is not a merchant and the dealing is civil in nature, a different court may have jurisdiction. The question of jurisdiction is therefore resolved first, since an error in it delays the hearing of the dispute.

Calculating the limitation period also matters to a merchant, as the general rule under the Commercial Courts Law is that a lawsuit is not heard after five years from the arising of the right, subject to specific exceptions, explained in the article The Limitation Period for Commercial Claims.

Steps of the process in commercial disputes for individuals

The work begins by understanding the dealings as they actually occurred, not as each party describes them, and then the file is built on the documents:

• Reviewing the commercial registration, the contract or accepted price quotation, and the invoices
• Preparing an account statement showing what is due, what has been paid, and the balance
• Assessing conversations and emails as digital evidence
• Sending a written notice to the other party and exploring settlement
• Filing the statement of claim or responding to it through Najiz and following up on hearings

Commercial partnership between individuals

Many disputes begin with a partnership lacking a clear written contract, or a contract that does not regulate a partner's exit and the valuation of his share. In companies, the relationship is governed by the articles of incorporation and the Companies Law, and both should be reviewed before taking any action. For commercial litigation services more broadly, see the Commercial Disputes page.

Frequently asked questions

Do I need a commercial lawyer if my establishment is a sole proprietorship?

A sole proprietorship is not separate from its owner, as commercial obligations fall on them personally, and the effect of a judgment may extend to their personal assets. It is therefore useful to bring the dispute to a lawyer before responding to a claim or filing a lawsuit, to determine the competent court, assess the evidence, and calculate the applicable periods, even though engaging counsel is not mandatory in every case.

What documents should I prepare before filing a lawsuit in the Commercial Court?

The commercial registration; the contract or accepted price quotation; the invoices and delivery receipts; the account statement; the bank transfers; and correspondence with the other party, with their dates. A written summary of the facts in chronological order is also useful, along with the claimed amount itemized by source, since the statement of claim is built on these elements.

Can a Commercial Dispute Be Resolved Without Court?

Yes, in many cases; the dispute may be ended by a written settlement after notifying the other party or while the lawsuit is pending, or by arbitration if there is an arbitration clause in the contract. Each option is assessed according to the value of the dispute, the strength of the evidence, and the other party's willingness, and any agreement is documented in wording that clearly specifies the amounts and dates.