You enter into contracts many times throughout the day, often not realizing you are doing so. However, each contract leads to obligations and rights that we should be aware of. To get an idea of what you should look out for in each contract transaction see the list below for simple hints and key points.
- READ IT! While it may seem obvious, too often people sign documents not having a full understanding of what they entail. This is an easy way of becoming responsible for things we might not feel fully comfortable with. Most contracts leave room for negotiations and possible changes to accommodate both sides in the deal.
- Understand your rights and obligations. Make sure you understand what each party is required to do or provide to fulfill his or her obligation under the contract, as well as have a full understanding of what your rights are in case the other party fails to perform any part of his or her obligation.
- Be clear on the key terms of the contract. The key terms usually describe the services or products, the payment terms, due dates, any key dates, or milestones, how and when the contract is finalized and options in case of a breach from either party.
- Look for any red flags, difficult terms, or confusing phrases. Do not skip anything thinking it is not important. Every statement in a contract could have potential consequences.
- Ask for a signed copy of the contract. If things do not work out, it is important to be able to reference back to the contract to understand what rights one may have against the other party.
- Talk to an expert. If possible, especially in larger, more serious transactions, consult with an expert attorney who can help you prepare, review and negotiate a contract, to ensure that your rights are fully protected.
Call/text Sobon Law, LLC at (216) 586-4246, today to ask for help with any contract.