Why an Attorney Should Review a Contract Before You Sign It

While it may be tempting to skim through and sign a contract without fully understanding it, that can lead to some costly consequences for your business. An attorney can help ensure that a contract is enforceable, explain your rights and obligations, spot unfair and risky terms, and suggest negotiation tips.

Ensuring the Contract is Enforceable

To be enforceable, a contract must be for a lawful purpose, between parties that all have capacity, and include an offer, acceptance of the offer, and consideration. An attorney can confirm that the contract satisfies these requirements and identify terms that may make the contract void or unenforceable.

Explaining Your Rights and Obligations

Even seemingly simple contracts can contain dense legal language that can be difficult to understand. An attorney can explain the terms in plain English, so that you know your rights and obligations under the contract.

Spotting Unfair and Risky Terms

Contracts are often drafted by the party with more bargaining power, which means the contract may be skewed heavily in that party’s favor. A lawyer can identify terms that are unreasonable or disproportionately risky for you, such as overly broad indemnification clauses, hidden fees, obligations that are triggered by factors outside your control, and more.

Suggesting Negotiation Tips

People often assume that contracts are not negotiable, but that is often untrue. A lawyer can suggest revisions that clarify ambiguous terms, reduce your liability, or align the agreement more closely with your goals.

Before signing a contract, consider having an attorney review it. The upfront investment in contract review can prevent future headaches and offer peace of mind.

If you are about to sign a contract and want to protect your interests, The Parsa Firm, APC can help.

The text above is intended for informational purposes only and is not legal advice. For advice tailored to your situation, please consult with an attorney.