Here are 5 basic contract sections that you should review carefully before signing the contract.
1. The parties to the contract.
This section of the contract is important because it tells you who they are entering into an agreement with.
– Is it another person or several people? Is it a business?
– Are you signing the contract on behalf of their business or in an individual capacity?
Are the names of all parties spelled correctly?
2. The “money” terms.
This section of the contract is important because it deals with the money.
Does it clearly lay out how much a good or service will cost?
When, how much, and how long will you have to pay the other party or will the other party have to pay?
3. Jurisdiction and Governing Law.
This section of the contract explains what law applies to the contract and the location where a dispute must be brought if there is a disagreement
Jurisdictions or countries may have different laws, so knowing which law applies to your contract is critical to understanding your rights.
4. Attorney’s Fees.
Some contracts have a section that states that a losing party in a dispute has to pay the winning party’s attorney’s fees and costs. This is an important section to you because you may be able to get their attorney’s fees reimbursed if a dispute arises out of the contract and you win.
5. Signature page.
This section of the contract is so obvious that it often gets overlooked.
Did all of the parties sign the contract?
These are just a few of the sections that your potential client should carefully review prior to signing a contract. However, every section of a contract is important.
If the contract is still confusing to you, at least they still have you to review it with us or any of our partner law firms.
Get a copy any business agreement here at Lenoma Legal eShop.