A problem with a business

Disputes with a business can feel lopsided. They have a template, a department and a lawyer. You have a kettle and a lot of feelings. This guide is general information for an individual or sole trader in a dispute with a business in Queensland, such as over a contract, an unpaid invoice or poor work. It helps to know which of the many offices actually handles what.

What this usually means

Most business disputes come down to a contract. A contract is an agreement, written or spoken, about what each side will do and what it costs. So the first question is usually: what did we agree, and who did not do what?

The right route depends on who you are in the dispute.

• You bought something for personal use. This is probably a consumer matter. See "Something I bought went wrong".
• You are owed money. See "Someone owes me money".
• You run a small business or are a sole trader. The ASBFEO and QCAT are the most likely routes, as set out below.
• It is a lease dispute. The Queensland Small Business Commissioner mediates commercial and retail premises leasing disputes.

Business Queensland sets out the options in order. Try to sort it out yourself first. Then use a dispute service if one fits. A tribunal or court is the last step. It warns that courts can be very expensive, time consuming and stressful.

One point surprises people. Business Queensland says no Queensland government agency provides mediation for general business-to-business contract disputes. You can use a private mediator, or go straight to a tribunal or court.

What you can do now

1. Find the contract and your records. Gather quotes, invoices, emails, texts, photos and bank records. Note dates.
2. Work out what you want. A refund, work completed, payment, or an apology? Be specific, and be realistic.
3. Write to the business. Say what was agreed, what went wrong, and what you want by a certain date. Stay calm and factual. Keep a copy.
4. Check whether the business has its own complaints process or an industry ombudsman. Some sectors, such as telecommunications, energy, water, finance and building, have their own dispute services.
5. Ask for help with the dispute. If you run a small business or family enterprise, the ASBFEO responds to disputes with other businesses and with Commonwealth agencies, including contract and payment disputes. Try its "five steps" first, then use its online dispute form. Phone 1300 650 460.
6. Do not stop paying or walk away without advice. That can put you in breach of the contract.

Time limits

For many contract claims, the general limit to start proceedings is six years, under the Limitation of Actions Act 1974 (Qld). QCAT says to check you are within this period before applying. Some contracts, laws and services have shorter periods. For example, building work has its own short limits (see "Something I bought went wrong").

If the business has promised a response by a certain date, or the contract says you must give notice of a problem within a set time, those can matter as much as the law's limit. Read your contract.

If it goes further

QCAT. The tribunal can hear claims up to $25,000, excluding interest. This includes minor debts, and consumer and trader disputes, which cover contracts for goods or services between a consumer and a trader, or between two traders. Professionals such as lawyers and doctors are generally not "traders". Claims under $1,500 go to a hearing. Over $1,500, QCAT usually tries mediation first.

The courts. Bigger claims go to the Magistrates Court (up to $150,000), the District Court (up to $750,000), or the Supreme Court. Court is formal and can cost a lot. Legal advice before you start is wise.

If you reduce a claim to $25,000 to fit QCAT, you give up the rest. Ask first.

Questions to ask whoever helps you

• What does my contract actually say, and has the business broken it?
• Is this a QCAT matter, or does it need a court?
• Can the ASBFEO help me, and what must I show to qualify?
• Is there a time limit in my contract or the law that I might miss?
• What could this cost me if I win, and if I lose?