The practice of thoroughly reading and understanding a contract before agreeing to its terms is known as contract review.
It is advisable that anyone (company, entities, individuals) intending to enter into a business arrangement for the provision of a good or service get their contracts reviewed.
Reasons for having a lawyer review your contract include the following:
- To ensure that all the terms used in the contract are legal.
- To ensure that all terms in the contract are clear. That in turn prevents parties to the agreement from misunderstanding what they sign, and at the end have you bound to perform to an agreement you did not understand.
- To ensure a contract is fair and legally binding.
- To ensure that the agreement drawn up is favorable to you (the client)
- To examine and review the legality of the agreement you already have and explain it to you in simple and clear terms so that you are clearly aware of the terms and their risks in regard to performance of the contracts,
- To suggest changes to a contract in your best interest,
- To offer advise you in case you are dealing with a party who has broken a contract or if you want to exit from the contract,
- Lawyers can also negotiate the contract on your behalf. Serious contract negotiations can get difficult and heated, creating tension between the parties before the parties ever reach an agreement. A lawyer can act as an impartial third party to allow for progress with negotiations.
- Lawyers are trained with the legal knowledge and experience to evaluate your contract conditions and identify potential problems and hazards for your company in the future and in turn this reduces costly mistakes.
- When you receive a business contract from the other party, the agreement was most likely created by their lawyer. By understanding your goals and acting to defend your best interests, lawyers help you level the playing field.
- Litigation usually loses out to negotiation. A lawyer will identify clauses in a company contract that can be renegotiated ahead of time and suggest language you might use in the negotiation discussions.
- Lawyers make sure that your business contracts clearly explain all parties’ responsibilities and give fair terms for resolving disputes, which will avoid the legal issues that come with poorly drafted contracts.
- Lawyers ensure that you completely comprehend the provisions of the contract and how they will influence your business. You may rest easy knowing that your interests are safeguarded, that the terms reflect market norms, and that your agreement is legally binding.
Contractual agreements have a binding effect on the parties. Therefore, any party entering into a contract must have a sound understanding of what they are getting into. Legal knowledge and expertise are required before signing a contract. At Netsheria International, we have a team of experienced lawyers who offer legal documents and legal advice to clients before they enter into contracts. Further, we seek to ensure that our clients’ interests are protected from any risks. For more information, you can go to our website www.netsheria.com