It is likely that, in the course of your business, you have encountered many types of contracts. However, have you ever been guilty of reading them without much thought to what dangers could lurk inside?
If that’s a yes, you certainly aren’t alone. Many businesses enter into contracts with little thought as to the potential repercussions of them, and later find themselves hit with baffling charges, or try to terminate only to learn this is incredibly difficult to do.
There are a thousand things that can go wrong because of a badly written contract, and only one thing that needs to be done in order to prevent them: a review. But what is the purpose of a contract review exactly?
How a Contract Review Protects You and Your Business
It is not uncommon for some contracts to be worded in a confusing way in order to blindside the party entering into them. Though particularly misleading contracts might not be considered legally binding when contested in court, this is not necessarily a guarantee, and failing to thoroughly read and understand what you are agreeing to is most likely going to be deemed your responsibility.
Understanding the language used in a contract is half the battle. If it needs to be simplified, or rather you are simply worried about what you may not have noticed, a contract review is a great way to do this. Being aware of potential repercussions and the actions you can take to mitigate them is a great way to better know what you’re signing up to, rather than doing it blind.
Typically, a contract review will make note of the most important information within a contract, as well as any concerns that you should be aware of. It may also outline the potential risks of those concerns, and whether they are generally deemed acceptable or are blatantly unfair. Understanding what the purpose of a contract review is can give you confidence to know what’s important and negotiate terms if necessary.
Remember, the worst thing you can be told when negotiating is no. It is then ultimately up to you to decide whether the benefits outweigh the risks – however, we can help you come to that decision. Get in touch with us today on 01604 217365 or info@bebconsultancy.co.uk for all your contract needs.