The Scary Side of Business Contracts

Not all horrors hide under the bed; some hide in your terms and conditions.

Halloween might bring ghosts, ghouls, and things that go bump in the night, but for many businesses, the real fright comes from what’s lurking in their contracts. Hidden clauses, vague wording, and out-of-date terms can all come back to haunt you, often when it’s too late to do anything about it.

At Lawpoint, we’ve seen our fair share of contract horror stories, and the good news is, most can be avoided with a bit of legal foresight and clarity.

So, light your pumpkin, grab a torch, and let’s explore the darker corners of your business contracts…

The Vanishing Payment Clause

It’s amazing how often this one appears. The contract looks fine at first glance - price agreed, scope agreed, but when you dig deeper, there’s nothing about when you’ll get paid or what happens if you don’t.

Without clear payment terms, you can end up chasing ghosts when your invoice goes unpaid. The fix? Simple but vital: set out payment dates, consequences for late payment, and any right to suspend work until you’re paid.

The Never-Ending Contract

Beware the “zombie” agreement - the one that won’t die. Many standard terms auto-renew unless notice is given in a very specific way or within a short timeframe.

If you don’t keep track, you could find yourself locked into a commercial relationship you thought had ended, or paying for a service you no longer use. A good contracts management system (and clear end-of-term clauses) will stop this one rising from the grave.

The Shapeshifting Liability Clause

Liability clauses are where many business owners’ eyes glaze over, and that’s exactly where the danger hides.

If the clause is unclear or too broad, you could find yourself taking on more risk than you ever intended. Or worse, it may exclude the other party’s liability entirely, leaving you out of pocket if things go wrong.

Good drafting should strike a balance: fair, transparent, and proportionate to the deal. Nothing to fear in the daylight.

The Phantom IP Owner

Who owns the work once it’s created - you, or your supplier? In creative or tech contracts, it’s all too easy for this to be left vague or tucked away in the small print.

If IP ownership isn’t clearly transferred, you might find that what you thought you bought isn’t truly yours. It’s a chilling thought and one that can be avoided with a single well-drafted clause.

How to Exorcise the Demons

The best way to protect yourself from contract horrors is to shine a light on them before they strike:

• Review your contracts regularly, especially before renewals or renewals by silence.

• Use plain English - complexity doesn’t mean quality.

• Make sure your terms reflect your actual processes, not just what a template says.

• Ask questions - if something looks spooky or unclear, it probably is.

Final Thought

Contracts shouldn’t scare you - they should serve you. But when left unchecked, unclear, or outdated, they can quickly turn from protective to petrifying.

At Lawpoint, we help businesses take the fear out of legal documents. We’ll review your contracts in plain English, explain the risks, and make sure your terms are working for you, not against you.

Don’t let your contracts give you nightmares. Call 01202 729 444 or email info@law-point.co.uk for a chat about how we can make your business agreements clear, fair, and watertight.