Before You Sign: A Practical Checklist for Reviewing a Contract

A well-drafted contract prevents disputes before they start. Before signing any agreement, take the time to check the following points, and ask for a legal review when anything is unclear.

The basics

• Are all parties named correctly and completely?
• Is the scope of work, goods, or services described clearly?
• Are the amounts, payment dates, and payment methods stated?

Duration and exit

• How long does the agreement last, and does it renew automatically?
• How can each party terminate it, and with what notice?
• What happens if one party does not perform its obligations?

Disputes and notices

• How will disagreements be handled?
• How and where must formal notices be sent?

Before you sign

Make sure that anything agreed verbally is written into the contract, and keep a signed copy. If something is unclear or one-sided, get advice first, because it is much easier to fix a contract before it is signed.

This article offers general information only and is not legal advice for your specific situation.