Resolve a Dispute Over a Breach of Contract in Ohio
Finding yourself in a situation involving a breach of contract is not uncommon in business relationships. When that happens, you need to decide whether starting a lawsuit would be the best option or if it would cost you more than what you have already lost.
DoNotPay provides relevant information about a breach of contract in Ohio and suggests ways to resolve the issue—including creating a breach of contract letter for an out-of-court settlement.
A breach of contract in Ohio happens when one party does not:
- Fulfill any of the contract terms
- Provide a just cause for the breach
If you—i.e., the non-breaching or injured party—have fulfilled your obligations determined by the contract, you are legally allowed to seek damages.
Different laws apply to breach of contract cases depending on the:
- Subject of your contract
- Parties involved in the agreement
If you decide to sue for breach of contract, your lawsuit could be governed under one of the following laws:
- Ohio common law
- Uniform Commercial Code
- Ohio consumer protection laws
Keep in mind that:
- The breaching party might raise an affirmative defense in court
- You should try to resolve the dispute outside of court to avoid lengthy and expensive legal proceedings
The statute of limitations starts from the date the breach of contract happens. Time frames for filing a lawsuit vary depending on the type of contract (e.g., written or oral) and actions (e.g., sales or against the state).
Take a look at the following table to see the breach of contract statute of limitations in Ohio:
|Type of Contract||Statute of Limitations|
|Oral contracts||Four years|
|Written contracts||Six years|
There are exceptions to the above-listed time frames, and the prior statute of limitations remains for the following actions:
- For sales of goods—Four years
- Against the state—Five years
- To recover title or ownership of real estate—21 years
As these time frames change, you should check the latest version of the Ohio Revised Code, breach of contract sections 2305.06 and 2305.07, before starting a lawsuit.
If you decide to sue the other party, you will need to prove the following three breach of contract elements:
- The existence of a contract—In Ohio, a valid contract consists of a(n):
- The other party’s breach of contract—You must show that the breaching party has failed to perform their contractual obligations
- Resulting damages—You need to demonstrate that you have suffered harm and injury as a result of the other party’s non-performance and breach of contract
Keep in mind that while an oral contract is as valid as a written one in Ohio, you might have a hard time proving the terms of an oral agreement if the other contractual party contradicts you.
If you prove that the other party has breached the contract, a judge will award damages or another type of remedy. The purpose is to place you in the same position you would have been in if the breaching party had fulfilled the contractual terms.
In breach of contract cases in Ohio—for material or other breaches—the damages usually equal the:
- Price paid in the original contract
- Value of the underlying contract
Some agreements also contain the following provisions about damages:
|Liquidated damages||If your contract has provisions about liquidated damages, you—as the injured party—might get additional damages|
|Attorney’s fees and litigation costs||You can receive attorney’s fees if:
Punitive damages are available only for insurance contracts in Ohio.
You could try to settle the dispute out of court since litigation can be costly and time-consuming. You should send the breaching party a demand letter outlining the facts of the agreement and reminding them of their obligations.
If you’re looking for ways to create a demand letter, here are some options you can consider :
- Do it by yourself—You should get familiar with relevant state laws or use online demand letter templates to help you. Keep in mind that you need to inspect the template you decide to use as some are too generic and might not:
- Comply with your state laws
- Be suitable for your case
- Consult an attorney—While this might be your first thought, keep in mind that attorney’s fees can be extremely high
- Hire a debt collector—You could turn to a collection agency if you would like to get compensated for your losses fast. Keep in mind that agencies can charge up to 50% of the collected amount
- Use DoNotPay—Our affordable yet efficient robot lawyer can help you prepare a reliable demand letter fast
Our AI-powered app can generate a demand letter automatically. We combine legal requirements with the information you provide to create a letter that complies with your state laws and addresses your specific situation.
Follow these simple steps:
- Register for DoNotPay
- Opt for the Client Breach of Contract product
- Answer a few questions about the breaching party and the contract
- Indicate a new payment deadline for the other party
- Upload photographic evidence, if available
DoNotPay draws up the demand letter automatically and can even deliver it to the other party on your behalf.
In case they do not respond, we can help you sue them in small claims court.
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