Contract Bias

A contract is a legally binding agreement between two or more parties. This may sound like common sense, but it is important to understand the terms and conditions of a contract before signing on the dotted line. Here are a few things that people should do before signing a contract:

Read the contract carefully: Before signing a contract, it is important to read it thoroughly and understand all of the terms and conditions. This includes any fine print or language that may be difficult to understand. If you have any questions or concerns, it is best to ask for clarification or consult with an attorney before signing the contract.

Know the obligations of all parties: A contract sets out the obligations of all parties involved. It is important to understand what you are responsible for and what the other party is responsible for. If there is anything that you are unsure of or do not agree with, it is best to address it before signing the contract.

Check the duration of the contract: Contracts can be for a specific period of time, or they can be open-ended. It is important to understand the duration of the contract and what happens at the end of the contract. For example, if the contract is for a year, will it automatically renew or will it need to be renegotiated?

Know how and when the contract can be terminated: It's important to know the terms and conditions of the termination clause. Understand the conditions under which the contract can be terminated by either party and the consequences of termination.

Understand the dispute resolution: Understand the dispute resolution clause of the contract, whether it includes mandatory arbitration, mediation, or litigating disputes in court. It's important to understand these clauses in case a dispute arises in the future.

Get legal advice: Before signing any contract, it's a good idea to seek legal advice. A lawyer can review the contract and ensure that it is fair and legally binding.