5 Questions To Ask Before Signing A Contract

Throughout our lives, there are several times when we are required to sign contracts. Some examples include accepting an employment offer or organizing a business transaction.

Whatever the reason, you mustn’t rush the process. You want to understand what you agree to fully, or there could be consequences later down the track.

Want to learn more? In this article, we will talk about five questions you should ask before signing a contract to avoid future disputes.

Let’s get started.

Do I understand the contract?

Some contracts can be somewhat overwhelming, and it’s normal to have trouble understanding the legal jargon. If you constantly find yourself googling phrases and terms, you might want to rethink before signing straight away. 

In most situations, it’s best to reach out to a legal professional for advice, such as the team at HKM Baltimore. They can review employment contracts and ensure you are getting the most favorable terms. It really can save you from a lot of unnecessary stress. 

What am I receiving?

One of the most critical aspects to double-check in your contract is what you are receiving. Whether it’s payment, services, or goods, it will need to be carefully outlined.

Without properly confirming, you’re putting yourself at risk of giving something and not getting what you want in return. You would be surprised how many people will not include what you initially negotiated.

What parties are involved?

You might just assume that there are only two parties involved in your contract, but that’s not always the case. Occasionally, there may be others that are also expecting payment.

Everyone’s requirements should be outlined, but it’s wise to confirm. You don’t want to accidentally breach an arrangement because you didn’t read carefully enough.

Do I understand my role?

We already discussed understanding what you are receiving, but don’t forget your role as well. You must be confident of your capabilities and know what you must bring to the table.

Again, this could be payment or goods, but in the state of employment, it might outline your specific requirements. This can include your number or working hours and what tasks you must complete in the company.

How can the contract be terminated?

Lastly, even if you are happy with everything the contract has outlined, always know how it can be terminated. Circumstances can change and breaching of agreed terms could result in a rather significant loss.

It’s also wise to understand disputes and what will occur if there is one. For instance, certain complications may not be eligible to go to court straight away.

Even if you think it’s not important now, it may very well be in the future. So, it’s always better to be prepared for every situation.

Final words 

A lot of the time, contracts can often be the start of something exciting, but it’s still critical to be careful. Take your time and if required, reach out for professional assistance. You can’t be expected to understand everything.