A contract is a business's best tool to prevent disputes, but problems often arise from "signing a loosely drafted contract" that later invites conflicting interpretation. Here are 6 points to check before signing.
1. Parties and signing authority
Check who the parties are (individual/company) and whether the signatory truly has authority — e.g. an authorised director per the company certificate.
2. Scope of work and delivery
Clearly state what is to be done, the quantity, quality, and the delivery/acceptance criteria — to reduce arguments over "is it complete?"
3. Price, payment, and tax
The amount, payment schedule, payment terms, and who bears taxes/fees.
4. Term and termination
Start/end dates, renewal conditions, and in which cases each party may terminate.
5. Liability and penalties
What happens on breach — penalties/damages and the scope of liability.
6. Dispute resolution
Agree which court applies, or whether to use mediation/arbitration, and the governing law.
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Before signing an important business contract, have our lawyers draft or review it to close the risks from the start.