Five Things to Check Before Signing Any Contract

Every contract represents a commitment, but many businesses rush through the final review because the commercial deal has already been agreed.

Before signing any agreement, take a step back and ask yourself five simple questions:

1. Are you contracting with the correct legal entity?

Always check who the agreement is actually with. Confirm the legal name, company number where applicable and registered address. Never rely solely on a trading name.

2. Does the contract accurately reflect what was agreed?

Verbal conversations and email discussions don't always make it into the final document. Check that pricing, services, responsibilities, delivery dates and timescales match what was negotiated.

3. Are the risks fairly allocated?

Look carefully at liability clauses, indemnities, warranties and limitations of liability. Ask yourself whether the level of risk is proportionate to the value of the agreement.

4. Can you terminate the agreement if things go wrong?

Understand how long the contract lasts, what notice is required and whether there are any penalties for ending the agreement early.

5. Is the right person signing?

Ensure the agreement is signed by someone with authority to bind the organisation.

These simple checks won't replace legal advice, but they can significantly reduce the likelihood of future disputes.

If you're unsure about any aspect of a contract, obtaining advice before signing is almost always easier and more cost-effective than dealing with problems afterwards. Lawpoint is here to help.