If you enter a business contract, you need to ensure that the contract is valid and enforceable under Ohio law. Well-crafted contracts are foundational documents that outline the rights, expectations and responsibilities of all parties involved.
Ensuring a contract has the essential features will help you enforce it.
Specific and clear terms
Valid contracts need clear and specific terms. Without clear terms, the courts may struggle to distinguish the agreement between the two parties. After all, vague language often leads to misunderstandings and disputes.
Following a contract breach with specific and unambiguous terms, you may take the other participant to court. For all cases for less than $15,000, you can make your claims in the municipal court.
Details of the offer and acceptance
A contract should have a clear offer from one party, with an unequivocal acceptance from the other. Both parties should demonstrate their intent to be bound to the terms of the contract. While you can achieve this through verbal and written communication, written communication is more enforceable.
Consideration of all parties
Courts generally do not uphold unfair contracts. Parties must both exchange something of value. One party must exchange something for the other party’s obligations. For example, you can exchange services, money or goods.
Mutual consent
To enforce a contract, all parties must freely and willingly agree to all contract terms. Contracts become unenforceable if any party undergoes undue influence or coercion. Likewise, if one party misleads the other, he or she can void the contract.
For the court to uphold the contract, you must follow the law. The contract cannot include illegal activity and the parties involved must have the capacity to consent to a legal agreement.
