3 Key Steps to Take A Before Signing a Contract

If you are about to sign an agreement, whether related to a job, a property, or a bank loan, take it seriously because it is a contract! Therefore, there are several things to consider to avoid potential problems. Contracts have numerous gray areas and even a few clauses can easily cause a lot of trouble. So follow the three recommendations below:

1. Read and understand the smallest details

Before signing a contract, you must read it carefully especially since legal language is different than the business language you use in your day to day activities. To resolve this issue, you have two solutions: learn legal English or consult a lawyer. Remember that signing the contract blindly can subject you to uncontrolled hazards, particularly the part that outlines your obligations.

2. Delay your signature

Delaying your signature is not a bad thing to do. Even if you have a slight question regarding a term or a clause in the contract, do NOT sign it. A small confusion can turn to a serious problem in the execution phase. Again, discussing your contract terms with another party who understands, or practices law will help you make your final decision. For example, a clause in the contract may restrict you from performing the same type of job for someone else. If there is such a clause, and you do not want it, bring up the issue for discussion before signing the agreement. Additionally, delaying your signature until you fully understand the contract will help you in negotiations and potentially lead you to get some extra benefits. Also, the delay period can help you perform a detailed history check which can disclose important details that can be used in your favor.

3. Seek professional advice

Contracts are based in legal principles that you may not understand fully.  A lawyer will guide through all of the legalese and help you find any hidden clauses which can work against you.