How to Review Legal Contracts
It is important to carefully read a contract before signing it. You will want to make sure that you understand all of its provisions, regardless of how long the contract may be. Remember that this is a serious decision, especially if it involve a lot of money.
Things That You Will Need
- The contract
- A pen
- A legal pad
- Read over the entire contract making notes of anything that you do not understand (i.e. circle the section, make a note on a legal pad).
- Identify the section that states what goods or services will be provided.
- Determine when the goods are to be delivered or the services are to be rendered.
- Determine where these tasks will be performed.
- Determine which party is responsible for performing the various tasks. Make sure you understand whether these duties can be assigned to other parties.
- Make sure that all of the numbers add up and are what you were expecting them to be.
- Identify the parties that are legally bound by the agreement. Make sure that the contact information is also correct.
- Note the important dates such as the beginning and ending dates of the contract. Make sure that any step is also clearly stated.
- Review the reasons why the contract can be terminated. Note what must be done in order to terminate the contract. It is important for this section to be very clearly drafted so that there are no misunderstandings.
- Locate the indemnification clause (whereby a party is absolved of responsibility whenever someone is harmed).
- Review the choice of law clauses. This determines what state a court case will be held in if necessary.
- Review the choice of forum clauses. This determines what state a court case will be tried in if necessary.