A recent article, 6 Red Flags to Look For in Any Contract by Barry Moltz says that entering into a contract should be carefully read and scrutinized before you sign it, otherwise it could result in serious legal issues.
Here are some tips to consider before signing any agreement for your protection.
1. Dates and payment terms
First and foremost, always review thoroughly the portion about the dates and payment terms before entering into a contract. For instance, if your business needs to lease individual offices, make sure that the agreement terms for both parties that were verbally agreed to will be clearly stated in the contract.
2. Actual Contracted Parties
Make sure that the contract is between the correct parties or corporate entities. For instance, if you need to rent an open office space with cubes for your team, make sure that you fully understand the agreement terms and you enter the lease contract with legal parties.
3. Penalties and surcharges
Examine if there are penalties and surcharges to either party if something goes wrong in the execution of the contract. It is important to see if there is a grace period when a deadline is missed or one party is disgruntled.
4. Liability and Indemnity
Review this portion to understand who is liable if either of the parties get involved in legal action by an outsider. Try to get the other party to be responsible for all claims or at least have each party take care of their own legal expenses
Look deeply into these clauses because the contract might bind you exclusively, which can hamper your business growth. Try to ask some amendments if taking these clauses out of the contract is not possible.
To protect your business from any risk of uncertainty, reviewing the agreement terms thoroughly is crucial before signing a contract. If your small business is looking for office space in Denver, YourOffice offers workspace solutions with flexible agreement terms and multiple options to support future growth. YourOffice Denver offers beautifully appointed day offices Denver and team office space Denver that are fully wired and ready for you to move in and start working.