Contracts and Agreements serve as the backbone of any thriving business, offering clarity, accountability, and mutual understanding. Yet, mastering the intricacies of contract signing can prove challenging. Whether you’re a seasoned entrepreneur or just embarking on your business journey, understanding the nuances of contract negotiation and execution is crucial. Join us as we delve into the top five (5) tips for signing contracts and agreements. These insights will empower you to safeguard your interests and forge enduring, fruitful partnerships.
Top five major contract mistakes.
Finalised Contract is already executed (signed by all parties) before we receive it. To avoid surprise, reduce disputes and unexpected expense, it makes sense to get Clearman Lawyers involved earlier. Because we see hundreds of contracts it’s easy for us to quickly spot unbalanced, unfair or sneaky contract terms. The greatest leverage point for our expertise is during negotiations.
Parties Adding or removing parties to documents can be difficult or impossible and expensive. We work with clients to confirm the outcome they are aiming for and then test to make sure the entity is correct, including full names and order of names. Simple but critical: make sure documents are binding, avoid spooking lenders and avoid extra stamp duty costs.
Signer If the right person doesn’t sign, contracts may not be binding or a signer could be liable personally, instead of, for example receiving the protection of buying through a company as a Director.
Counter-offer If the terms have been changed in between signatures without appropriate agreement, the document may simply be a counter-offer instead of a binding contract. Counter-offers are a rejection of the prior offer, which then lapses.
Honourable mentions Some contracts require a witness to be binding, often contracts need formal consent to be signed electronically, sometimes not all parties have signed and some contracts are not dated.
Disclaimer
This page is not intended to provide legal advice and does not create a client-lawyer relationship. This post is provided for general information purposes and should not be relied upon as a substitute for legal advice. If you need help with legal advice for your particular situation, please contact our office (details below or on ‘Contact’ page) and we’ll be happy to assist you.