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Understanding what you should Look for in Contracts

look for in contracts picReading a lengthy contract can be intimidating and overwhelming. It is important to understand, however, that if you sign a contract without reading it, the law assumes that you not only read it, but you also understood and agreed to its provisions. Thus, if you are planning to execute a binding document that you do not understand, you should seek legal assistance to ensure that you not only understand what you are agreeing to, but also that it is in your best interests.

The term “contract” includes a wide variety of documents. For example, purchase orders, work agreements, sales documents and other similar types of documents can be legally binding agreements. It is important that you retain a signed copy of all contracts for your own records. Failing to retain your own copy makes it not only difficult to confirm you are complying with your duties, but also whether the other party is fulfilling its obligations under the agreement.

It is important to understand that unless an agreement is included in the written contract, you should not rely on it. This means that any verbal promises made by the other party to induce you into signing the contract must be included in the written document. The court will look at signed contract to interpret the terms of the agreement.

Although every transaction is unique, the following are a few basic terms that you should look for when reviewing a contract:

  • Whether it is money being paid or some other form of consideration, the full amount or terms that must be met should be detailed clearly
  • Any interest that will accrue or other types of charges that may be incurred should be set forth in dollars and cents
  • All services to be provided should be listed
  • The deadlines for performance should be clearly stated
  • The parties duties and obligations should be provided in detailed statements

You should never sign a legally binding document that is not complete or that contains blanks to be filled-in at a later date. And remember, the fine print is binding so it is important to read it too!

The Swenson Law Firm is located in Sacramento County and we proudly serve businesses of all sizes from all over the State of California as well as nationally and internationally. Contact us today to learn more about how we can assist you with matters such as trademarks, defending lawsuits, business formation, contract negotiations, hiring employees, and protecting your intellectual property. With our years of complex business trial and litigation experience, we are an effective, efficient and affordable choice in representing you at the bargaining table and in the courtroom.

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