Anytime that you sign a contract, it is important that the terms of your contract are properly drafted to ensure that it meets everyone’s intentions. We can draft or review contracts before you sign them including real property lease agreements, purchase or sale contracts, as well as employee agreements.
What Is the Importance of a Contract Review?
We enter into contracts every day for business and personal reasons. Some of these contracts are written, while others are oral. In every case, it is important that the terms of the contract are fairly negotiated, properly drafted, and reviewed to ensure the contract meets the intentions of the parties.
Whenever two parties enter into a contract, everything could be going smoothly until a problem arises. When the problem does occur, the parties will revert to the contract to resolve the problem. The contract should be very clear and concise in order to prevent misunderstanding of the parties’ intent when entering into the contract at the beginning of the relationship.
What Are Some Reasons for Contract Review?
We make all of our decisions through contracts when we run a business. For this reason, all terms and conditions in a contract should be handled correctly to prevent any legal issues. Everyone who is drafting and negotiating a business contract should always have the contract reviewed by a qualified professional.
Reasons why it’s important to review contracts are:
- You do not want people to misinterpret terms and get the wrong idea when then are signing. All terms and conditions should be unambiguous so both parties know exactly what you are intending the term to mean.
- You do not want to break any laws. When you are drafting and signing contracts, both parties must ensure that they are not breaking the law or being scammed by the other party.
- Contract review is also important to prevent future legal problems that may arise regarding payment terms or parties' duties and obligations.
How Are Contracts Drafted?
Many parties may want to tailor a form contract to their needs, and will use the form contract as a model. When drafting the contract, it is important that each party knows exactly what is expected of them. If there are any words that could be misconstrued, or any terms that are ambiguous, parties should define them within the contract. Ultimately, when drafting a contract, clarifying the terms and duties should be the goal.
Many parties use legal words and language, known as "legalese," when drafting contracts. However, this may make the obligations and terms of the contract confusing. Using regular language will insure that both parties understand what the contract says and means.
What Are the Best Ways to Review Contracts?
It may sound obvious, but before signing a contract, each party should read it. In reviewing the contract, parties need to make certain they understand the stated obligations under the contract. If there is any uncertainty as to the duties of each party, and yet they signed the contract, they may be liable for breaching the contract. Having a legal professional review the contract terms will ensure that the needs of each party will be met and that no party will obligate themselves unexpectedly. - See more at: