What Will an Attorney Look for During a Contract Review?

 Posted on October 06, 2022 in Business Law

When running a business, there are a lot of moving parts. Business owners might be focused on day-to-day operations, meeting with clients, managing employees, and other responsibilities. However, they will also need to stay on top of the legal side of things. One of the best ways to ensure that a business is legally protected is to have an attorney review contracts before they are signed. This can help business owners be sure that everything is in order and that they understand their rights and obligations. But what exactly will an attorney look for during a contract review? 

Key Issues to Address in a Contract Review

A lawyer will fully review the terms of a contract to ensure that it will meet the needs of a business. Some issues that will be considered include:

• The parties involved - An attorney will start by looking at the parties who are entering into a contractual agreement. This might seem like a small detail, but it is actually quite important. By ensuring that a contract includes the names, addresses, and other important details of the parties, as well as their subsidiaries, a lawyer will make sure the terms of the contract apply to all applicable people or companies.

• The purpose of the contract - It is important to understand exactly what each party is agreeing to do. Clearly defining the goals of each party and the obligations that will apply to them can ensure that everyone understands what will happen if one party does not hold up their end of the bargain. 

• Key dates and deadlines - In addition to the start and end date of a contract, there may be other key dates and deadlines that apply. This might include delivery dates for goods or services, payment deadlines, or other important milestones. By including these details in the contract, it will ensure that both parties are clear about when specific events are supposed to happen.

• Compensation - A contract must include consideration, which means that each party must receive something in return for what they are agreeing to do. That is, one party may perform work or provide goods, and they will receive payment in return. By fully defining the payments that will be made, as well as any other forms of consideration, this will avoid misunderstandings later on down the road. 

• Liability limitations - Indemnification clauses can protect a party to a contract from being held liable for any damages that may occur as a result of the transaction. These clauses can be essential for protecting the rights of the parties, but it will be important to understand the limits that will apply.

• The duration of the contract - It will be important to understand how long each party will be obligated to uphold their end of the deal. In addition to detailing the applicable start and end dates, a contract should also include termination provisions that outline the circumstances in which either party can terminate the agreement, as well as the types of notice that will be required. Renewal provisions may also be included that specify whether a contract will be automatically renewed or detail the circumstances under which the term of a contract may be extended.

• Restrictive covenants - Non-compete clauses, confidentiality clauses, and other similar terms can limit what a party to a contract can do while the contract is in effect and after the agreement has ended. It is important to understand the restrictions that will be put in place by these clauses in order to avoid potential violations.

• Dispute resolution - If a disagreement arises between the parties to a contract, it will be important to have a plan in place for how the issue will be resolved. This might include arbitration, mediation, or some other type of dispute resolution process. Including these details in the contract can save time and money later on by avoiding the need for litigation.

Contact Our Fort Lauderdale Contract Review Lawyer

Contracts are a necessary part of doing business, but it is important that they be fair and equitable for all parties involved. Having an attorney review a contract before you sign it is the best way to ensure that your interests are protected. At The Elliot Legal Group, P.A., we can identify any issues in business contracts and work with you to negotiate more favorable terms. To get legal help with contractual matters, contact our Pompano Beach business contracts attorney at 754-332-2101 and arrange a consultation today.

Sources:

https://blog.cinfin.com/2015/10/15/12-things-reviewing-a-contract/

https://safetyculture.com/checklists/contract-review/