In Ohio, business law states how contracts should be created, managed, and maintained. Many companies enter into contracts regularly but company owners may not understand the rules that they’re bound to. In 2021, a new contract law provided an update to the statute of limitation rules.
Update to statewide contract law
Senate Bill 13, a new contract law, was passed by the Ohio Senate on February 2021. This law requires that business owners keep records for their written contracts for eight years. The reason is that maintaining records for longer than this time is unnecessary. Owners are encouraged to create new contacts and reduce paperwork by storing their documents electronically.
Another problem is working with an outdated contract. Documents that are not renewed will cause delays in a project in order to update the terms. An expired document is no longer legally valid and cannot be enforced either. In addition, an outdated contract is unimpressive to associates and reduces the business’s credibility.
Benefits of business law
Business law is updated continuously to stay in touch with the modern world. Owners are required to follow contract laws to make sure that their legal documents are valid and relevant. Every law is designed to improve the efficiency of a business. Laws are made to eliminate contract disputes and prevent litigation.
The purpose of contract law
Ohio enacts statutes of limitations to tell businesses when and how to maintain their written contracts. The point is to improve the productivity of every business in the state. This new law helps to keep businesses competitive and relevant in an age of modern technology.