What Should I Do Before Signing a Contract?

Contracts are a part of everyday life. You may sign an agreement when renting a home, buying a vehicle, starting a job, hiring a contractor, purchasing a service, entering into a business relationship, or resolving a dispute. While many people sign contracts without having an attorney review them, important agreements should not be treated as something to simply sign without understanding.

One of the biggest mistakes people make when reviewing a contract is focusing only on the price. The amount you are paying is important, but a contract can contain many other provisions that may significantly affect your rights and responsibilities. An agreement may address cancellation, automatic renewal, refunds, interest, late fees, arbitration, liability, termination, deadlines, attorney's fees, and how disputes will be handled.

Before signing, take the time to understand what happens if something goes wrong. Ask yourself what happens if you want to cancel the agreement, whether you have to provide written notice, and whether there is a specific deadline for doing so. You should also understand what happens if the other party does not do what they promised and what remedies may be available to you.

Pay particular attention to provisions concerning disputes. Some contracts require disagreements to be resolved through arbitration rather than in court. Others may require a lawsuit to be filed in a particular location. These provisions can have an important effect on how you can pursue a dispute later.

You should also look carefully at any automatic renewal provisions. Some agreements continue from month to month or year to year unless you cancel within a specific period. Missing that deadline could result in the contract continuing longer than you expected.

Another important consideration is whether the written agreement matches what you were told before signing. A salesperson, contractor, business representative, or other person may make promises about what you will receive. Before signing, compare those promises with the actual language of the contract. If something important was promised to you but does not appear in the agreement, consider asking about it before you sign.

You should never feel pressured to sign an agreement that you do not understand. Contracts frequently contain legal terminology and provisions that may not be obvious to someone without legal experience. If there is a particular provision that concerns you or you simply want to understand what you are agreeing to, having an attorney review the document can provide valuable information before you commit to the agreement.

You do not necessarily need an attorney to negotiate every contract or represent you throughout an entire transaction. Sometimes, a focused document review may be enough to help you understand the agreement and identify issues you may want to address before signing.

Once a contract has been signed, your options may be more limited than they were before you agreed to its terms. That does not mean every signed contract is permanent or that you have no legal rights afterward. It simply means that understanding an important agreement before signing it can help you make a more informed decision.

LAWtica provides access to attorneys for specific legal services, including document review. If you have an agreement you are considering signing and want an attorney to take a closer look, a focused document review may be a practical place to start.

Before you sign it, make sure you understand it.

Have a contract you want an attorney to review? Visit LAWtica.com to learn more about getting help with your legal document.

This article is for general informational purposes only and does not constitute legal advice or create an attorney-client relationship.