Business owners often have to enter into contracts with other businesses. Because these are legal agreements, it’s imperative that you have everything in order when you’re ready to sign one. You must take the time to ensure that the contract reflects what you’re agreeing to.
There are several points to consider if you’re writing or reviewing a contract. Making sure that you catch anything that’s incorrect is imperative so that you aren’t going to be held to terms you didn’t intend.
What are some common points to review in a contract?
The document should clearly be labeled as a contract, so there isn’t any doubt about its purpose. It should clearly state what parties are part of the contract and contain important identifying information. The date on which the contract is executed must also be included.
All terms included in the contract should be conveyed clearly. Try to define technical terms and speak as plainly as possible. Sentences shouldn’t be overly complex since anything complicated can make the contract more difficult to understand.
While it might not seem too important, make sure that you proofread the document. Misplaced punctuation and incorrect grammar could dramatically alter the meaning of parts of the contract.
If possible, sign the document in colored ink so that it’s easy to note when a copy is made. Many times, contracts must be notarized, so find out if this is the case.
Anyone who’s drawing up a business contract should ensure they understand exactly what the contract conveys. This can offer protection if the contract is ever breached. Having someone review the contract before you present it or sign it is beneficial since it provides a chance to address anything that’s missing or misleading.