GNcareers, from Gulf News

Checklist before signing a contract

Contract signingImage Credit: Supplied

A business contract is a legal agreement between two or more parties. It can be for the sale and purchase of a business, partnership agreement, leasing of business premises, among others. Here are some things you need to take note of:

Read the contract. Be clear about the contract before signing the deal. To be legal, a contract must contain four important parts: offer, acceptance, intention of legal consequences and consideration. It should contain the date of the contract and the contact details of the parties involved in it. Check the definitions used and description on services that you may provide or receive.

Pay attention to detail. Check the payment amount, payment dates, interest on late payments, insurance, guarantee provisions, termination date and provided renewal terms before signing. Restrictions are sure part of most contracts. Check the geographic scope, duration and type of activity specified in the restriction.

Understand the terms. Take extra care when reading the financial part and consider the ideas and comments of a third person regarding the obligations of the contract. All financial provisions must be clear and correct, with the obligations of each party clearly described.

Know who to call for help. Experience will let you know any red flags, but being safe is equally important for beginners. To avoid significant consequences, take professional advice from legal or business consultants.

Handy Hints
• Make sure the document is legal before you sign
• Check all the contract restrictions and its duration
• Get professional advice regarding your obligations

Source: Asha Das, Special to Classifieds
The writer is a freelancer