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What Makes a Contract Enforceable?
In Ohio, a contract must include certain elements to be enforceable. If you are a business owner, it is a good idea to have a Cleveland contract lawyer go through every line of every contract you sign or use regularly in your business.
A verbal contract is a business contract the parties verbally agree to but do not put in writing. A verbal contract – unless it provides for the sale of real estate – can be legally binding in Ohio, but it may not be easy to prove a verbal contract’s validity in court.
If you agreed to a verbal contract with a party that has now breached that contract, contact a Cleveland business attorney immediately and ask that attorney to advise and represent you.
What Makes a Contract Valid in Ohio?
A contract, whether written or verbal, is valid and enforceable in Ohio only if it includes these elements:
- An offer: One party offers to do something.
- An acceptance: The other party accepts that offer.
- A consideration: Each party makes something of value available.
- A legal purpose: The contract has a legal purpose and not an illegal purpose.
- Capacity: Both sides have the ability to enter into and satisfy the contract.
- Mutual intent: Both sides plan and agree to be bound by the contract.
Can You Prove a Verbal Contract is Valid?
Generally speaking, the Ohio courts consider verbal contracts as valid as written contracts. Still, the outcomes of specific cases will hinge on the type of contract, the details of the alleged breach, and the jurisdiction. How can you prove the validity of a verbal contract?
When one or both parties act on the contract, that action may generate documents that include bills, receipts, letters, emails, memos, and faxes. These are evidence of a verbal contract’s validity. The testimony of witnesses to a contract’s creation may also be persuasive evidence.
Verbal contracts are best for simple agreements. You probably don’t need a written employment contract if you are paying a teenager from the neighborhood to mow your lawn or babysit. The simpler the agreement, the less chance there is of a legal dispute developing.
Should Employers Require Signed Employment Contracts?
Many small businesses in Ohio hire employees based on a conversation. Hiring someone based on a verbal or “handshake” contract helps an employee trust a new employer and reduces paperwork, but a business takes risks when it does not require signed employment contracts.
Employment contracts create concrete terms and conditions for employer-employee relationships. If you are a business owner in Ohio, documenting your compliance with state and federal employment regulations can help you avoid employment-related lawsuits.
When Can You Sue for Breach of Contract?
When two parties have a contract and one party fails to complete the terms of the agreement, the other party may suffer considerable losses due to that failure. In these cases, the victimized party may bring a breach of contract lawsuit with the assistance of a Cleveland contract lawyer.
If you pursue a breach of contract lawsuit, you and your lawyer must establish that you (the plaintiff) suffered economic losses due to the contract breach. Most breach of contract claims in Ohio are settled in mediation, arbitration, or private negotiations.
Could Your Breach of Contract Case Go to Trial?
Contract cases seldom go to trial, but if the other party (the defendant) fails to make a reasonable settlement offer or denies a breach of contract took place, your Cleveland business attorney will take your claim to court. If your lawsuit prevails at trial, the court may order the defendant to:
- reimburse you for direct monetary losses resulting from the breach
- pay your attorney’s fee and additional legal costs
- fulfill the terms and conditions of the contract
In many breach of contract cases, the contract itself may serve as a guide for the court to determine a just remedy.
When Should You Contact a Business Lawyer?
Although Ohio recognizes verbal contracts, the deadline for filing a breach of contract lawsuit differs for verbal and written contracts. The statute of limitations for verbal contracts is four years from the date of the breach; for written contracts, the deadline for taking action is six years.
Do not wait that long. When it is clear to you that a breach of contract has taken place, contact a Cleveland contract attorney at once. You and your attorney should begin compiling evidence and contacting witnesses as quickly as possible to develop the strongest possible case.
Do You Have the Legal Advice You Need?
To protect your business, almost all of your business contracts should be in writing. Business contracts include employment contracts, non-disclosure agreements, and end-user license agreements.
If the language of a contract is ambiguous, or if there is no offer, acceptance, consideration, legal purpose, capacity, or mutual intent, an Ohio court may determine the contract is not valid or enforceable.
If you do not understand a contract or you’re misled into signing one, that may be impossible to prove in court. A business owner in the Cleveland area should have the legal advice and insights of a Cleveland contract attorney regarding any contract before signing.
Who Should Represent and Advise Your Business?
Businesses face complicated legal questions almost daily. If you do not have a reliable business lawyer on your team, don’t wait for a legal problem to happen. Watson Kuhlman, LLC will review your contracts and help you put solutions in place before legal problems arise.
If you are dealing with a contract breach in or near the Cleveland area, contact us immediately. Watson Kuhlman will bring any contract dispute to its best possible resolution while protecting your business and your rights at each stage of the legal process.
Business owners need a legal team that offers authentic value and extraordinary client service. In Cleveland, that legal team is Watson Kuhlman. Schedule a free consultation to discuss what Watson Kuhlman can do for you and your business by calling our law offices at 216-208-7858.
