Unenforceable contracts can cost companies big in lawsuits

On Behalf of | Aug 23, 2019 | Business Contracts and Leases

It is risky business acquiring property or leasing it for commercial purposes. Many industries lend themselves to a lot of turnover, and assets can turn into liabilities without proper planning. Even the best planning can fall in the wrong environment or time for a business idea. This planning includes careful attention to the legal requirements in Ohio for a business contract or lease agreement. When specific needs for filings or public statements are not made, an entire contract may be rendered invalid or unenforceable at the worst possible times. A tow truck company is under legal pressure in a lawsuit alleging they were operating without proper contracts. One of the issues at hand is Ohio state law regarding the zone from which they towed vehicles. Private zones must be marked with the description of legal vehicles or contact information for the enforcing business, and neither were allegedly available. The lawsuit also alleges the company has no written contract with the property owner, which would also be a violation of Ohio contract law. The authorization forms for the towing specifically stated that they did not constitute a binding contract. “If you literally say on something, ‘This is not a contract,’ it’s not a contract,” said one of the attorneys representing the lawsuit’s plaintiff. Proposed contracts should generally get attention from a legal representative. This is to guard a person’s or organization’s interests as well as make sure documents and agreements adhere to Ohio law. An unenforceable agreement can cost precious time and money in court if contracts are not fully legal.