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What should I look for in a contract review?

On Behalf of | Jan 7, 2020 | Contracts

Before signing on the dotted line in Detroit, it is important to understand the nature of the contract that you are agreeing to. One of the most important aspects of contract design is the review process. There are certain things that you should be looking for, no matter what kind of contract you are signing. According to Ferris State University, it is paramount that you ensure that the contract you are signing accurately reflects the deal that is about to be struck between yourself and the other party. 

It is a shocking fact that people sign contracts without comprehensive review. When you are reviewing a contract, you should make absolutely sure that the parties are clearly identified, and include subsidiaries if relevant. Make sure that you scan the contract and ensure that there are no blanks left. Blank spots in contracts can end up being filled in by somebody else, and this can have disastrous consequences. You may also need to ensure that there are confidentiality provisions worked in to the body of the contract if one party will have access to the other party’s sensitive information. 

Make sure that the contract has provisions in case something goes wrong. Nobody likes to think about enacting the negative portions of a contract, but in the event that something does go wrong you will be happy they are clear and in print. Additionally, the contract should clearly reflect any hold harmless or indemnification provisions if desired or necessary. There should also be clear termination clauses in case one party which has to remove themselves from the agreement. 

A little bit of due diligence with contracts can save major headache, heartache, money, and time.