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What to consider before signing a contract

Contract Law · · 4 min read · By Prastitis Law

Signing a contract creates legally binding obligations. A little time spent checking before signature can prevent significant problems later.

Understand every term

Read the entire document — including schedules and the fine print. If a term is unclear, ask for clarification in writing before you sign.

Watch termination and penalty clauses

Check how and when the agreement can be terminated, what notice periods apply, and whether it provides for penalty clauses or automatic renewals.

Verify the other party

Make sure you are contracting with the right person or company, and that the signatory has authority to bind them.

Keep a complete record

Retain a signed copy and all related correspondence. In the event of a dispute, that record is often decisive.

For agreements of significant financial or personal importance, having a lawyer review the document before signature is a small investment compared with the cost of a future dispute.

This content is provided for general information only and does not constitute legal advice.

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