Contracts are a part of doing business in Ohio. There are contracts for the lease of property, purchase of property, employment service and more. While most would like to think that each party will honor his or her part of the contract, this is not always the case. All too often, there are contract disputes that, at times, lead to legal concerns.
Contracts can be either written or oral. However, oral contracts can often lead to misunderstandings and disputes regarding the exact promises that were made. While both types of contracts are valid, there are some types of contracts that must be in writing to be enforceable.
Contracts for the purchase of real estate are one type of contract that needs to be in writing. While the sale of the property could actually go through based upon an oral contract, if one party decided to back out of the contract, there would be nothing to keep him or her from doing so. This kind of uncertainty can make business planning difficult.
At times, a business may decide that it would be better to lease a location rather than purchase the property. Many times, both the business and the property owner want this to be a long-term lease for stability. Since this is a lease in excess of one year, it needs to be in writing to be enforceable. Again, an oral contract would be valid but unenforceable.
Contracts are an essential part of most Ohio businesses. They provide stability and security for both the business and the party with which the business has entered into the contract. However, it is important to keep in mind that contracts are enforceable documents and, as such, should be reviewed by -- and many times even prepared by -- legal counsel in order to avoid contract disputes.
Source: smallbusiness.findlaw.com, "What Contracts are Required to Be in Writing?", Accessed on April 2, 2017