Every year, the NFIB Small Business Legal Center receives dozens of calls from business owners who are looking for advice on how to handle contract disputes. These issues can revolve around a variety of topics, ranging from non-payment to dissatisfaction with how things are going under an existing contract. Business owners in Ohio need to be well informed about how to handle contract-related business disputes that they may face.
Typically, a party that is looking for advice concerning a contract is unhappy during the performance stage of the agreement. That is to say, they are not pleased with the way the other party is holding up their end of the signed agreement and are gathering information about how they can proceed.
Depending on the severity of the lack of performance by one of the contract parties, these business disputes can potentially end in a court-ordered contract rescission. A contract can be eligible for a rescission if either party can prove that they were induced into signing the contract by fraudulent means or if one party is proven to not be adhering to their end of the agreement.
Breach of contract
If either party finds themselves in breach of the contract, the other party holds most of the power concerning how things will proceed. There can often be financial penalties and legal ramifications for breaching a contract as well as the penalties set forth in the contract.
Any business owner who finds themselves in the middle of a business dispute is encouraged to contact an attorney who is well versed in their state’s business law processes. This attorney may first review the terms of the contract before doing their own investigation into the claims of breach by either party. At that point, the attorney can better advise their client on how to proceed through the court or help reach a negotiated agreement.
