What to look for in a contract, before signing it. 1st part
As can be easily understood, reviewing contracts or agreement can be tricky and risky and it is not always obvious what to look for or what important clause is missing or which clause is dangerous or not wrote down in the mutual interest of the parties.
To let the check work much easier it is a good rule prepare a proper checklist, as the one we are proposing your hereinafter (by no means it is not and may not be exhaustive, but certainly helpful).
There are some basic question to ask to ourselves as we are reviewing a contract/agreement.
1. Does it contain all elements of a legal document?
2. Do we understand it and can it be explained to the director signing authority? Or do we have the authority to sign it?
3. Does the language and scope of the document reflect what was negotiated/agreed?
4. What are the obligations on our company/ourselves? Can our company/ourselves meet the
Other issues to consider?
5. Is the contract a consistent and clear one?
6. Does the contract plan for future disagreements eg. Dispute/consultations?
7. Can our company/ourselves terminate it? Under which conditions?
8. Which is the applicable law? Is the Jurisdiction Local or Overseas?