Dinn, Hochman & Potter, LLC

Early contract termination can lead to contract disputes

At some point in time, most Ohio contracts come to an end. This can be because the contract has been fulfilled or one or both parties decide to terminate the contract. When the contract comes to an end due to termination by one or both parties, it is likely that a variety of contract disputes are the root cause and will play a role in what happens going forward.

In one such instance, a state agency decided to change vendors prior to the expiration of the contract with the current vendor. The contractor was responsible for provided courtesy shuttle services for stranded motorists throughout the state. In May, the agency notified the contractor that it would terminate the contract effective January. The contract was due to expire the following September.

The state agency has stated that they assumed the contractor would continue working under the terms of the contract until the January date. They indicate that they requested a price for continued operation through January, and the contractor responded. However, no specific agreement as to these terms was reached, and the contractor now appears to have ceased its duties under the terms of the contract.

Early termination of an Ohio contract can lead to a variety of contract disputes. In some instances, the contract itself addresses the possibility of early termination. Prior to executing the contract and/or deciding that early termination is an option under the terms of the contract, those involved will want to carefully review the contract and seek experienced legal guidance.

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