6 Basic Things to Consider before Signing a Contract
Whether it is a Job agreement, Buying a property, or applying for a loan, a legal contract is not something that can be taken for granted. There are so many loopholes in those pages that can easily be missed. But overlooking them can cause a lot of trouble in future. So here are a few things that should be considered before signing a contract:
Give attention to detailing
This goes without saying that before signing a contract or any legal document for that matter, you must read it carefully. However just reading will not be much of a help in certain cases. The language in which these contracts are written is called legal English, which is quite different than what we are used to. You might have to look up certain words and sentences on the internet to know their exact meaning.
When in doubt, postpone signing
Even if you have the slightest confusion regarding the terms of a contract, you must not sign it. What might seem like the small glitch at the beginning, can turn out to be a big problem in the future. Discuss all the terms with another party in detail and make everything clear. Legal matters require cent percent transparency.
There must be certain terms which you think are not absolutely impartial. At such situations, it is essential to negotiate on the relevant terms and come to a mutual agreement so that there is no misunderstanding after the contract has been signed.
Be clear with exit terms
There are certain people who have a limited role in your life. This applies to your business or professional life a well. It might happen in the future that you no longer agree with the terms of a contract you are about to sign. In order to make sure that there are no complications in case you want to opt out, you must carefully look for exit terms in your contract and add the some if not present in the contract already (with mutual consent of course!).
Rights versus obligations
Always look for the rights you are given in a certain contract. This would mean what actions can you take if another party is not able to stand to their commitment. Moreover, you must read the obligations and actions that can be taken against you if you land up in the same situation and make sure that they are justified with your rights.
Hire a lawyer
Legal jargon is not something that everyone understands completely. And signing a contract without a proper understanding would mean putting a lot at stake. At such a case it is always advisable to seek professional help. Depending on the nature of your contract, you must hire a specialized lawyer. This might also let you know some of the things that are hidden in the contract which only a professional can understand.
Legal documentation requires a deep analysis. It is better to take precautions before that deal is closed. Along with professional help, you should also consider consulting a friend or acquaintance who has recently been in the similar situation as you. Even seemingly trifling steps can prove to be very lucrative sometimes.