If two individuals or organizations enter into a written agreement, it is considered to be a contract. If the one of the parties does not meet their obligations as defined by the agreements, they are considered to be in breach of contract. When this occurs, the dispute can either be resolved through mediation, arbitration or through the court system, and the court system is the most common way of handling disputes.
Several interrelated companies have been accused of violating Ohio's consumer protection laws. According to a lawsuit that was filed by the state's Attorney General, the group of companies used deceptive business practices when they sold travel club memberships to their customers. Furthermore, it was suggested that when customers tried to cancel their memberships, the companies did not honor their cancellation policies.
In its most basic form, a contract is an agreement by two or more parties that is binding on all parties. In some cases, a party may agree to do something that it otherwise would not be obligated to do. In other cases, a party may not do something that it is otherwise entitled to do. Regardless of what the contract states, it is not valid if one or more parties to the contract are ruled incompetent.
Businesses engaged in the selling of goods often enter into sales contracts with buyers. These contracts are formed when a business agrees to supply goods to the buyer by a certain time, and the buyer agrees to pay money in exchange. Sales contracts are legal documents, and when a party breaches the contract, the breaching party can face negative consequences.
One of the easiest ways to have a deal nullified is to not put it in writing. In most cases, a court will rule that a contract does not exist unless it is written out. Having a physical document helps to outline the agreement and the obligations of both parties concretely.
It is possible that an Ohio business owner will be the subject of a lawsuit. However, there are steps that a business can take to protect itself from unnecessary litigation. The first step is to acknowledge the fact that a lawsuit could occur at any time.
Some Ohio business owners may be interested in a lawsuit that was filed on Oct. 29 in a U.S. Bankruptcy Court; the suit alleges that Hormel Foods Corp. engaged in dishonest business practices, leading AgFeed Industries Inc. to file bankruptcy. The suit, filed by shareholders of the now defunct AgFeed Industries, also claims that Hormel Foods withheld information related to livestock raising company M2P2's business practices. The lawsuit is seeking an unspecified amount of damages.
The remedies available to a plaintiff in an Ohio breach of contract case depend on the terms of the contract. The most common remedy is money damages, but the plaintiff may in some circumstances pursue rescission, specific performance or injunctive relief, either in lieu of or in addition to money damages. As a preliminary matter, the non-breaching party should generally notify the other of a breach as soon as possible. Failure to timely notify the breaching party may preclude or limit recovery in some cases.
One simple, yet effective, way that Ohio businesses can avoid contract disputes is to have all contracts and agreements notarized. This may seem like an unnecessary and time-consuming step, especially if a notary public is difficult to locate. However, a business owner who has had the legitimacy of a contract challenged because the signatures were challenged will most likely consider such a step to be mandatory in the future.
Ohio residents may be interested to learn about a breach of contract dispute that was just resolved between Xerox and the Montana Department of Health and Human Services. As of July 18, the state agency has confirmed that Xerox is no longer in breach of contract, and the company has begun cooperating with the planning of a $70-million-dollar project to create a payment handling system.