Troubleshooting Legal Problems

3 must-dos before signing a contract

Creating and entering into business contracts is likely a big part of running your business. Making sure that your business contracts are binding, enforceable and clear can protect your interests and your operations.

According to the Small Business Administration, in 2019, there were 30.7 small businesses in the U.S., and most of these operations likely relied on contracts to run their businesses. Before you agree to another contract, there are a few steps you should take to protect your business.

1. Review the entire document

If you feel like you are already familiar with the terms of the business contract, you may not feel the need to read the entire thing. However, you should always thoroughly review any new contract to catch discrepancies and ensure the terms are what you agreed to.

2. Watch out for red flags

Look for missed details or errors in every contract as you review it. You should also watch for indicators that the contract is problematic. For example, you may not want to sign a contract that does not state clear reasons for termination or options for dispute resolution if something goes wrong.

3. Consult with an attorney

Making sure your contracts align with the law and protect you from liability is a large task. Whenever you create a new contract or enter an agreement with another party, consult with an attorney prior to signing.

Having an attorney look over your contracts can ensure the terms of the agreement are fair. An attorney can also help you negotiate the terms of a new contract, manage renewals and edit contracts as needed.