8 Things To Consider Before Signing A Business Contract
Every businessman has a burning desire to constantly sign big business contracts. But before signing these contracts, there are necessary things that need to be put into consideration.
This is because, human beings by nature can be quite deceptive and thus, may not always be trusted to keep their words. Again, the society that we live in is quite a complex one that agreements between different individuals or parties cannot just be reached by word of mouth.
For these reasons we have written agreements or as they might be called in modern nomenclature; contracts.
What Are Contracts?
Contracts are contractual agreements that are reached by two or more parties and is binding upon those parties that are signatories to it. These agreements are usually in writing and would detail the duties and obligations that the signatories to it are obligated to perform.
Failure to perform these duties or obligations by any of the parties to the agreement to be in breach of the said agreement and such person or party will be held liable for such breach.
Due to the nature of these arrangements, it is simply a matter of wisdom that the individuals that want to reach an agreement consider certain things before entering the deal.
The following are things to consider before signing a business contract:
Ensure That It Is In Writing
The first thing that you should make sure of when about to agree to a deal is to ensure that the agreement is in writing.
This is to prevent a situation where the different parties to the agreement will now have different recollections as to the details of the agreement or a situation where a party to the deal will want to play smart.
Ensure You Read And Understand The Details Of The Agreement
Most people think that the terms and conditions in a contract are long unnecessary write-ups that nobody reads because they are not important.
On the contrary, if you are to be a part or signatory to an agreement, it is important that you read and understand the content of those agreements. If you do not do this, you might find out later that you just agreed to something that is not beneficial or conducive for you.
Ensure That The Agreement Is Legal
Though agreements are between two or more parties, there might be occasions where the agreement or deal being drawn up or being proposed by the parties might run afoul of the law.
If such an agreement is entered into, it will be a void contract and will be unenforceable in court.
Know What Your Rights And Obligations Are In The Deal
Remember that in an agreement, there are rights, duties and obligations and it is important for anyone who is entering into such an agreement to know what their rights, duties and obligations are.
This prevents or protects you from being exploited. Again, knowing what your obligations are also helps you know the things that you should do so as to not be in breach of the contract.
Get The Assistance Of A Professional
Sometimes, it might not seem important but it is necessary to enlist the help of a professional in the lead up to signing these agreements.
The primary reason for this being that agreements such as these are usually drafted by lawyers with the terms in the contract usually being of a legal tilt and would a such, need a lawyer’s interpretation.
Ensure That There Is An Option For Conflict Resolution
No matter how good a deal might be, it is still possible that a misunderstanding might arise in the future with respect to those contracts. For this reason, there should be an option for conflict resolution should any conflict arise between the parties.
Ensure That There Is An Option For Termination Of The Arrangement
Everything that has a beginning will surely have an end. This essence of this particular point is to ensure that there the terms for termination or exiting of the contract are clearly stated in the arrangement.
There Should be An Option For Renewal
It is said that when a journey is good then it is worth a second trial. There should be a clause in the arrangement or deal allowing for a renegotiation and a renewal of the deal.
This gives the parties involved in the contract the option to either continue with it as it is or renegotiate it.
Contracts being legal documents should be handled with all the due diligence that it requires. This protects one from running into confusing agreements and even lawsuits. Follow the guidelines above listed to forestall such occurrences.
By Gracefield Maxcot
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