Do I Really Need to Read the Contract?

Why is it important to read a contract before signing? A recent Ohio court case involving the Cleveland Browns provides another good reminder of the mistakes that can easily happen if you do not.

The case began in 2019, when the Cleveland Browns entered into a sponsorship agreement with Antonio’s Pizza. The restaurant became the “Official Hometown Pizza Partner of the Cleveland Browns” in exchange for an annual fee of $156,560.

However, in 2020, the Browns alleged that Antonio’s had failed to make payments. As it turned out, the Browns had mistakenly drafted the contract in the name of the wrong company - a different Antonio’s Pizza and Spaghetti, owned by a family member of the correct Antonio’s. The signatory had accidentally signed on behalf of the wrong entity without the authority to do so.

Litigation ensured over whether the contract could be enforced. In 2024, an appeals court ruled in favor of the Browns, primarily because Antonio’s had waited too long to challenge an arbitrator’s decision in favor of the team.

For business owners, this is another important reminder to carefully read a contract before signing it. In this case, the drafting mistake could have been easily noticed and corrected by either the Browns or Antonio’s.

Contact our office today for assistance with reviewing your business’s contracts.