Introduction

A business contract does more than record a deal. It sets expectations, allocates responsibilities, and explains what happens when circumstances change. Taking time to review the details before signing can help you spot unclear terms and identify questions to raise.

1. Confirm the Parties and Scope

Check that each party is correctly identified and that the agreement clearly describes the goods, services, deliverables, or obligations involved.

2. Review Payment and Timing

Look for payment dates, invoicing requirements, expenses, milestones, late-payment terms, and any conditions that must be met before payment is due.

3. Understand Responsibilities and Risk

Identify who is responsible for each task, what standards apply, and how the agreement addresses delays, errors, confidentiality, indemnity, and limits of liability.

4. Check Renewal and Termination

Review the agreement’s duration, renewal process, notice periods, termination rights, and any obligations that continue after the agreement ends.

5. Clarify Dispute Resolution

Understand the governing law, dispute process, venue, and notice requirements. These terms can matter if the relationship breaks down.

Before You Sign

Make a list of unclear terms and questions. For significant agreements, consider obtaining advice from a qualified lawyer familiar with the relevant jurisdiction and transaction.

This article provides general information only and is not legal advice. Laws and requirements vary by jurisdiction.