Cooperation in business

Starting your adventure with running business activity you should be prepared that cooperation with the contractors does not always go well. Situations when the late payment occur, the suppliers do not deliver goods on time are not unusual. The most important is to be adequately prepared for them. The principle of limited trust that each driver knows should apply also to conduct of business. When establishing business relationships with counterparties you need to select partners in terms of their reliability, financial situation and history of activity. CEIDG register and National Court Register (KRS) give opportunity to confirm the existence of the company and to verify its basic data, e.g. on forms of activities, the structure of the board and shareholders. You can also check the prospective counterparty in a list of the business information offices (the list can be found on the CEIDG website in a tab Cooperation). Advice on verification of counterparties can be found here.

The best way of resolving disputes in business is to avoid them. Therefore you should ensure that your company signed agreements with other parties that comply with the formal requirements, clearly define the subject matter of the contract, terms, responsibility for its implementation and sanctions in the event of failure to observe the terms thereof. You may also provide additional safeguard of agreement. You should be aware that, depending on the form of activities, financial responsibility may look differently. You can find out more from the article on business agreements.

Very often disputes in business may be settled amicably. The article on the enforcement of receivables presents various steps which you should take when seeking recovery.

Increasingly popular alternative to courts are methods such as mediation and arbitration. They are carried out by the competent arbitration courts e.g. the Court of Arbitration at the Polish Chamber of Commerce in Warsaw. Their advantages include less formalism, faster and cheaper procedures for disputes settlement. It is also interesting to know that in 2014 on the initiative of the Ministry of Economy six regional Arbitration and Mediation Centres in Poland were created. They may be helpful to you in case of business disputes.

However, sometimes the consensual dispute resolution measures do not bring effects and the only way to deal with unreliable partner is to take the case to court. Depending on the situation, various types of proceedings can be used - it is good to know the differences between them and the circumstances of their application. More information on this subject can be found here. Recently entrepreneurs have gained a new tool enabling recovery of their claims - an e-court.

Try to monitor closely finances of your company and deadlines for claims. It can prevent time-barring of claims. Information on limitation for claims can be found here. Check also on payment periods in commercial transactions.

When establishing relation with the contractors it is good to know about asset liability depending on the form of conducting business activity.

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