A business contract is a legally binding agreement between two or more persons or entities. It is recommended that you bear in mind some tips below before the official signing.
- Read every word, including the fine print
- Ensure that it reflects the terms and conditions that were negotiated
- Seek legal advice
- Allow plenty of time to consider and understand the contract
- Don’t be pressured into signing anything if you are unsure
- Never leave blank spaces on a signed contract – cross them out if you have nothing to add so they cannot be altered later
- Make sure that you and the other party initial any changes to the contract
- Obtain a copy of the signed contract for your records.
Once you’ve signed a contract you may not be able to get out of it without compensating the other party for their genuine loss and expenses. Compensation to the other party could include additional court costs if the other party takes their claim against you to court. Some contracts may allow you to terminate early, with or without having to pay compensation to the other party. You should seek legal advice if you want to include an opting-out clause.
TIP: If it is not possible to have a written contract make sure you have other documentation such as emails, quotes, or notes about your discussions to help you identify what was agreed.