Contract Restrictions

State of Ohio Contract Restrictions

As a state of Ohio public institution, Shawnee State University is prohibited from agreeing to the following contractual terms:

  1. Indemnification -- State institutions are prohibited from entering into open-ended indemnification and hold harmless provisions, pursuant to Ohio Attorney General Opinion 96-060 (see and other earlier A.G. opinions. Alternative language may be used that makes each party responsible for its own negligent acts or omissions.
  2. Choice of Law/Venue -- The Ohio Court of Claims has exclusive jurisdiction for money claims against entities of the State of Ohio, pursuant to Ohio Revised Code  2743.02. Shawnee State University does not have authority to waive that jurisdiction. The only acceptable alternative is to leave this term silent.
  3. Arbitration -- The Ohio Attorney General's Office and the Court of Claims must consent to the resolution of claims against the State. Therefore binding resolution is prohibited. Non-binding mediation is an acceptable alternative.

Confidentiality may also be a concern in a state contract. State institutions are subject to the Ohio Public Records Act, O.R.C. 149.43 et seq., which broadly defines a "public record" and narrowly construes any exception. Therefore, state institutions are generally prohibited from agreeing to keep terms of an agreement confidential. One primary exception is a trade secret, which is defined in O.R.C. 1333.61.


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