A contract review costs a fraction of a contract dispute. Before you sign anything, work through these six points.
1. Who exactly are the parties
Check the registered name and registration number of the company you are contracting with, not the trading name. If a person signs on behalf of a company, confirm they have authority to do so.
2. What is actually being delivered
The scope should describe the work, the standard, the quantity and the deadline. Vague scope clauses cause most of the disputes we see.
3. Payment terms and interest
Look at when payment falls due, what triggers it, and what happens if it is late. Check whether deposits are refundable.
4. Cancellation and breach
Find out how either party may cancel, what notice is required and what happens to money already paid. Read the penalty clauses carefully.
5. Limitation of liability
Some agreements cap the supplier's liability at a low figure. Decide whether that cap is acceptable given the value of the work.
6. Dispute resolution and jurisdiction
Check whether disputes go to arbitration or to court, and which court. This affects the cost and the speed of any claim you may need to bring.
Where to from here
This article is general information and not legal advice on your matter. Facts change outcomes. If any part of it applies to your situation, speak to us before you act.