Irrespective of what your contract may be, whether it’s a multi-million dollar service or a just the drafting of an insurance contract, it’s essential to get everything right from the beginning. Contract drafting requires a keen eye and great amount of diligence, so everything can work out as expected. Managing expectations, getting the right information, and focusing on the most important aspects can help you obtain the right results in contract management. One thing that could come in handy is implementing a contract lifecycle management system for your business, this kind of software could make the whole process so much easier.
In most occasions, you may be tempted to glance over your contract and sign it without actually knowing what it involves and what the stakes are to you or the other party. It’s imperative to consult with experts during the drafting and signing sessions of a contract. In all these instances, you need to be sure that your interests are protected.
So, what should you look for when drafting a contract?
- What Does the Contract Involve?
When signing a contract for the first time, you may be thinking that it is a straightforward thing. Nonetheless, you need to remember that a contract involves more than just the items in it. For instance, when you are signing a contract for a new job, such as washing automobiles, you may think to yourself that your work will only involve washing cars. However, there could be more to that. A closer look at the contract may reveal that you have to wash a certain number of cars within a given period. Failure to comply with these terms could lead to non-payment or even termination. Therefore, before you can sign a contract, regardless of what it may involve, whether insurance, work-related, or business-related, you need to ascertain what the contract involves.
- Who is Involved?
When it comes to drafting and signing a contract, it is imperative to have an idea of who is involved. You need to do your research and find out who else is involved. For instance, when purchasing a new car, you need to know whether you are dealing directly with the seller or you are working with a broker. The same applies for insurance or any other aspect. By so doing, you’ll be in a position to prevent any future surprises in your contract.
- Rights and Responsibilities
It is essential to identify who is liable if anything goes wrong with the contract. Make sure you have everything on paper. You should be in a position to understand what your rights and responsibilities are under the contract as well. Go through the contract carefully because rights and responsibilities are often found scattered within the contract.
- Understand the Terms of Exit
At one point in the future, you may decide that you no longer want to continue with the contract because you find it unsuitable. To ensure there are no complications on the way, it’s essential that your contract allows for such a transition in a smooth way. Carefully look at the exit terms included in your contract, and in case you find them unsuitable, you can make alterations (with mutual consent) or opt out all the same.
- Find out if there are Hidden Clauses
When it comes to drafting contracts, you need to be careful with hidden clauses. In most cases, people tend to overlook the “fine print,” which often contains the most important aspects of the contract. Go through the fine print of your contract and understand what it entails. If you are having problems interpreting your contract, there are professionals such as Equify LLC who can help expose the hidden factors within your contract. In addition to that, these experts can help you keep up with the rules and regulation of the government so you can avoid paying so much of your hard-earned money.
- Talk to the Right Person
While this subject has been mentioned earlier, you need to ensure that you are dealing with the right people. You need to ascertain whether they have the legal capability to deliver their offer. Subsequently, another party will be responsible for checking suitability. For instance people suffering from mental health issues or people under the age of 16 are not considered eligible. Such matters should be ascertained during contract drafting.
- Hire a lawyer
Legal jargon is not meant for everyone. To sign a contract without understanding it would put a lot at stake. That‘s why it’s advisable to seek help from the legal experts. You must hire an experienced lawyer as per the nature of your contract. By so doing, you’ll be confident you are handling all matters of your contract according to the law and that nothing will come to bite you on the back later on.
- Give attention to details
Before signing any legal document, it is essential to read it carefully. Clarity and the number of words in the terms and conditions of a contract are what often mislead people. The use of these words is not meant to mislead you intentionally but that’s just how contracts are written. If you do not pay attention to details, there is a high chance you may misinterpret the contract when something is not clear.
- Counterchecking the contract
We probably have come across something that needs to be signed after accepting a range of terms and conditions. Very few people if none take the time to understand the contract fully. This has further been fueled by online platforms like social media where people sign in blindly. When dealing with matters of the contract, you need to counter check every aspect of it before you can pen off the agreement. Issues to do with a contract, especially those relating to business need to be handled with care. To avoid costly errors, it’s imperative to countercheck your contract before finally accepting it.
Final Word
When it comes to drafting and signing contracts, it is advisable to consider the factors highlighted above. Remember, contracts can be binding. If the necessary measures are not taken, you could end up losing a lot of money. If you are not sure what the details in your contract entail, make sure you hire the right professionals to guide you through your contract.
