What To Check Before Signing A Contract
A contract is a legal commitment that can affect your business for months or even years. All the more reason to contact a Des Moines, IA business contract lawyer before you sign anything. Before putting pen to paper, it’s important to slow down and read carefully. Fortunately, with 16 years of experience in corporate formation law, we know our way around a contract. Read on to see what you should look out for, and contact us today to get legal input you can trust.
Review The Names And Parties Involved
Make sure the correct legal names are listed for everyone involved. It doesn’t matter if you’re running a small business or a major corporation: the contract should use your full legal entity name—not just your brand or trade name.
Confirm The Payment Terms
Look closely at how and when payments will be made. Is there an upfront deposit? Are there deadlines for partial or full payments? What happens if someone misses a payment? Are there late fees? Clear payment terms protect both sides. If the language seems vague or inconsistent, ask for clarification or suggest edits.
Look For Deadlines And Performance Requirements
Many contracts involve deadlines, project timelines, or delivery schedules. Make sure these are realistic and clearly written. If one side is expected to complete a task by a certain date, that should be spelled out.
Watch For Automatic Renewals
Some agreements automatically renew at the end of the initial term. If you don’t want to be locked into a long-term deal without a chance to review the terms, make sure the renewal section gives you enough time to cancel or renegotiate.
Understand The Exit Options
Every contract should have a clear way out. Check if there’s a termination clause that allows you to cancel under certain conditions. Does it require written notice? Are there fees involved? Can either party walk away, or only one side?
Look For Vague Or One-Sided Terms
Pay attention to language that’s too broad or favors the other party too heavily. For example, a phrase like “at our sole discretion” gives the other side full control over certain decisions. If a contract includes many one-sided terms, that might be a sign that the deal needs further discussion.
Check For Confidentiality And Non-Compete Language
If the agreement includes confidentiality clauses or non-compete terms, read them closely. You’ll want to understand what information you’re expected to keep private, and for how long. Non-compete terms can also limit your ability to work with other clients or in certain industries, so it’s important to know what you’re agreeing to.
Review Dispute Resolution Procedures
Disagreements happen. A good contract will explain how they’ll be handled. Some include mediation, arbitration, or specific court requirements. You’ll also want to check where legal disputes would be resolved—especially if the other party is in another state.
Let Us Help You Protect Your Business
At Law Group of Iowa, we’ve worked with clients across industries to review, revise, and draft clear, enforceable contracts – and our history in business law means we’re a valuable ally to have in your corner. If you’re about to sign an agreement and want a second set of eyes, a business contract lawyer from our team can help you feel more confident moving forward. Contact us today to get started.
