Why Agreement Be Reviewed?

It gives opportunity to all the parties involved in the transaction to completely understand each and every term and implication upon it before singing and serves the below purposes.

• Helps to reduce risks
• Protects the business against unwanted binding obligations
• Increases transparency and ensures accuracy
• Boosts clarity and reduces uncertainty
• Gives option to avoid unclear and unwanted terms and conditions
• To be clear and understand to which you are or your business is agreeing that later legally binds you or your business upon signing
• Chance to add required additions if missed
• Chance to delete unwanted and non required aspects
• Opportunity to address concerns or conflicting views
• Opportunity to check and address non- compliance issues
• Additional chance to asses’ financial risks or issues if any
• Opportunity to check and address unenforceability of agreement concerns if any
• Helps in enhanced and better & sustained business relationships
• Helps to reduce non fulfillable obligations
• Boosts brand and reputation
• Helps to avoid unnecessary wastage of time and resources
• Avoids penalties, fines and payment of damages
• Helps to fulfil obligations and exercise rights from time to time
• Help to reduce litigations and disputes
• Robust part of effective overall contract management

When to Review the Agreement Before or After Signing?

Agreement review is crucial before signing but subsequently after signing the agreement also review may require in the events like amendments, re- negotiation, obligation management or termination. So, agreement review can be done prior execution or after execution depending upon the need.

Takeaways: Review of Agreement/s is loaded with multiple benefits and it is lastopportunity to protect against unnecessary disputes, litigations and risks and maintain healthy business relationships.

Role of review in the effective contract lifecycle management is key and elementary.Review of Agreement only after signing to ratify and reduce the risks is most ineffective and many a times futile exercise. So, agreement review needs to part and parcel of the overall contract management.

Review of Agreement without required revisions is like flesh without bones. Upon review the it is required to do the additions or deletions based on the understanding and need prior signing any and every agreement.

Review of Agreement is as important as signing the Agreement considering its advantages and non-review consequences. Hence inculcating the culture of review before signing  each agreement is helpful and advisable.