Why You Should Read a Contract Before Signing

A contract is a written promise. Once signed, it binds you, sometimes for several years. Yet we often sign quickly, out of trust or lack of time. Taking a moment to read it can spare you a great deal of trouble.

Points to look at closely

• The parties and the purpose: who commits to whom, and for exactly what.
• The term and renewal: does it renew automatically?
• The conditions for ending it: how and when can you bring it to a close?
• The penalties for delay or termination.

If a clause seems vague, ask for it to be clarified in writing. Something said out loud that does not appear in the text may be hard to rely on later.

Don’t wait for a disagreement to have an important document reviewed. A conversation before signing almost always takes less effort than a problem to fix afterwards. This article remains general in nature.