The First 24 Hours of a Contract Dispute: Practical steps to protect your position

Introduction

In our last article in this contract series, we discussed how disputes often begin long before lawyers are called in, sometimes in overlooked clauses, unclear expectations, or missed warning signs. But even the best-drafted contracts can still find their way into conflict.

A contract dispute is rarely first recognised in a courtroom or through a formal letter. More often, it begins with a quiet shift in tone, when the conversation changes from “how do we move forward?” to “how exposed are we?”

This article focuses on a phase that is frequently underestimated: the first 24 hours after a dispute becomes apparent. This short window plays a decisive role in shaping everything that follows. Early action influences the narrative, strengthens bargaining power, and sets the tone for negotiations or litigation.

At this stage, the goal is not to do everything at once. It is to do the right minimum, secure facts, preserve rights, control communication, and keep options open. When handled with discipline, these first steps can prevent escalation. When mishandled, they can weaken even the strongest contractual position.

Immediate Protective Steps

1. Preserve All Evidence

Every contract dispute ultimately turns on proof. Claims succeed not because they are persuasive, but because they are supported by evidence.
In practice, this evidence usually takes the form of emails, WhatsApp messages, call logs, draft agreements, invoices, bank statements, and other records created during the life of the contract. Once a dispute becomes apparent, these materials must be secured immediately.

Early preservation reduces the risk of lost correspondence, missing records, or allegations of document destruction. The objective is not to gather everything indiscriminately, but to ensure completeness. A clear documentary trail makes it easier to assess exposure and build strategy.

The importance of early evidence gathering was underscored in Baker Marine (Nig.) Ltd v Chevron (Nig.) Ltd (2006) 13 NWLR (Pt. 997) 276. Although breach of contract was established at arbitration, the claimant failed to prove the actual loss suffered. On appeal, the Supreme Court set aside the award of substantial damages, holding that where loss is not proved, only nominal damages are recoverable. The lesson is simple: even a strong claim can unravel without solid evidence.

2. Review the Contract

Once documents are secured, attention must return to the contract itself. It remains the primary reference point in any dispute.
Certain clauses deserve immediate focus:

• termination provisions,

• notice requirements,

• dispute resolution mechanisms, and

• governing law and jurisdiction clauses.

Termination clauses often impose strict conditions that must be satisfied before a contract can be lawfully brought to an end. Notice provisions may prescribe timelines and formats that are not optional. Failure to comply can weaken or defeat an otherwise valid claim.

Dispute resolution clauses are equally critical. In Sqimnga (Nig) Ltd v SAP (Nig) Ltd (2025) 2 NWLR (Pt. 1977) 423, the Court of Appeal declined jurisdiction because the parties had clearly chosen a foreign forum and law. Many commercial contracts also impose multi-tiered dispute resolution processes. Skipping a step can lead to delay, wasted costs, and the need to restart proceedings entirely.

An early contract review ensures that every subsequent step is taken within the framework the parties originally agreed.

3. Issue Required Notices Promptly

Once the contract has been reviewed, the next priority is compliance with any notice requirements.

Notices are often conditions precedent to enforcing rights, terminating the agreement, or triggering dispute resolution procedures. Contracts typically prescribe how notices must be issued, when they must be sent, and how service must be effected.

Delay or non-compliance can undermine an otherwise strong position. Prompt notices serve both a legal and strategic function: they preserve rights, clarify positions early, and reduce the risk of arguments that a party waived its rights by inaction.

Importantly, issuing a notice does not mean escalating the dispute unnecessarily. A notice can be firm without being hostile, and precise without conceding liability. What matters is activating the contractual machinery correctly and on time.

4. Stop Inadvertent Admissions

At the early stage of a dispute, every word matters. What is said, expressly or by implication, can later shape liability.

Apologies, assurances, or promises to “make things right” may feel commercially sensible in the moment. But if negotiations fail, such statements can become evidence of responsibility. This risk is particularly acute in emails, messages, and other recorded communications.

Under Nigerian law, admitted facts require no further proof (Section 123, Evidence Act 2011, as amended; Ajide v Kelani (1985) 3 NWLR (Pt. 12) 248). A careless admission can therefore remove the other party’s burden entirely.

The first 24 hours demand restraint. It is better to pause than to speak too quickly.

5. Maintain Controlled Communication

How parties communicate in the early days of a dispute often determines whether matters de-escalate or harden. Communication should remain factual, measured, and focused.

Over-explanation, informal concessions, or emotionally charged responses can complicate matters unnecessarily. It is also important to separate routine operational correspondence from dispute-related communication, as the latter is more likely to be scrutinised later.

One of the most effective early controls is to nominate a single point of contact for external communication. This ensures consistency, prevents mixed messages, and reduces the risk of contradictory positions. It also presents a unified front and limits opportunities for strategic pressure from the other side.

Early discipline in communication protects positions before they harden, and often keeps disputes from becoming more complex than they need to be.

Closing Thought

The first 24 hours of a contract dispute rarely feel dramatic. Yet they quietly shape everything that follows. In this short window, businesses either secure their footing or begin the slow process of losing control of the narrative.

Handled with clarity, restraint, and strategic intent, these early steps can preserve leverage, protect relationships, and sometimes prevent a dispute from escalating at all. In contract disputes, timing is not everything, but in the first 24 hours, it comes very close.

About the Authors

This guide was prepared by the Dispute Resolution team at Broderick Bozimo & Company. The team advises on contractual disputes, commercial litigation, and arbitration, drawing on decades of experience representing clients in high stakes matters across Nigeria.

Contact
Broderick Bozimo & Company
21 Dakala Street, Wuse 2, Abuja F.C.T.
Nigeria

Email: [email protected]
Website: www.broderickbozimo.com

Disclaimer
This publication provides general information and does not constitute legal advice. You should not act or refrain from acting based on its content without seeking professional advice. Contacting us does not create a solicitor-client relationship. We can only act once we have completed a conflict check and both parties have signed a formal engagement agreement.