Three Important Precautions for Signing a Legal Contract
Contracts are binding to the involved parties, and breaking an agreement can have legal consequences, including fines and imprisonment. Therefore, if you are preparing to sign a contract for a business partnership, employment, property purchase or other purposes, you should engage a qualified solicitor to draft, evaluate and advise on the document before signing. Often, people take advantage of the complexity of contracts to gain an unfair advantage in an agreement. A solicitor will help you identify pitfalls or draft a contract to avoid legal complications. In addition to choosing an experienced law professional, here are some precautions for ensuring the best outcome when signing a contract with a company or other individuals.
Assess the Clarity
Most contracts are standard documents with details on the rights and responsibilities of the parties involved. The materials are developed according to the standards of the specific industry. However, these standard contracts can be modified, customised or even rewritten to match unique requirements. Therefore, you cannot be certain about the type of contract presented for a transaction. When signing any contract, however trivial, review the information on your rights and obligations for the partnership. Ensure that the details of the contract are clear and immune to skewed interpretations. Some contracts are written in clear layman's language to accommodate the general population. However, you should still consult your solicitor on unclear terms or jargon.
Avoid Verbal Terms
Negotiations are crucial to establishing a contract between two or more parties. The discussions on the terms of the agreement can take part in formal and informal settings. Often, the initial agreements are verbal with a handshake. Unfortunately, a simple promise cannot be enforced by law due to the lack of proof. Therefore, if you negotiate any condition, ensure the details are in the document before signing.
Check Exit Conditions
The terms of cancellation are critical to determining if a contract is favourable. Always assess a contract while considering the possibility of the partnership, collaboration or lease failing before the outlined period lapses. Do not assume you can meet the demands of the agreement in the future because unexpected issues can arise. Ideal exit clauses should limit your financial obligations. However, keep in mind that a price is necessary for cancelling a contract, so negotiate the most reasonable terms for the agreement. Finally, check the fine print of each contract before signing it, and avoid harsh conditions. Ensure the clauses on critical issues like arbitration policies and non-compete agreements match your plans to mitigate future losses.
For more information, contact a solicitor near you.