Read Carefully: Read each word in the agreement and take time to understand all the terms in the contract. Entire Agreement needs to read and understood before signing.
Negotiate: It is essential to negotiate the terms which you feel are one sided or you don’t want to accept. Mutually acceptable needs to be part of the Agreement and non-consensuses terms shall be negotiated
No Blank Space: Prior signing make sure no space left in any portion of contract and make sure nothing can be altered in the contract after signing.
Cross Verify: Check whether the negotiated terms are part of the agreement or not. If not ensure to include the all negotiated terms.
Don’t Sign When Unsure: Don’t sign when you are unsure. If you have any doubt postpone signing and ensure to clear your doubt. Seek clarity before you sign the Agreement
Know your Rights & Responsibilities: To exercise your rights it is must to know the rights and similarly to fulfil your obligations know them clearly otherwise it may lead to breach
Be Clear with Exist Terms: Based on the duration of Agreement and what are the consequences of termination or early termination, opt -out options and so on so forth.
Avoid Ambiguous Terms: Always take out any ambiguous terms from the contract or alter it make it clear before signing instead of struggling after signing. As this may lead to conflict and dispute in future
Seek Legal Advice: If needed and whenever necessary before signing any agreement is signed. Once contract signed you are legally obligated do some actions or not do certain actions and failure to fulfil your obligations in line with contract may lead to compensate the loss of the other party.
Know Risks: Ensure that you clearly know what risks you are accepting by entering into the contract before signing and take only calculated risks when needed. Avoid uncalculated risks.
Don’t Ignore Annexure / Schedules: Please be attentive to read and understand all the terms of the Agreement detailed in exhibit or annexure or schedule whatever it is called as long as it is part of Agreement in any form. Including diagrams or sketches or otherwise. All the terms of the Annexures exhibit schedule are equally binding on you.
Tailor Made Terms: Tuning the terms basing on the transaction and consensus of the parties is key if are using template.
Delete Unwanted & Unrelated Terms: Sometimes it may look like something which not applicable is okay to be part of the agreement. But it is better to delete all the unwanted and unrelated terms as that may in future add unwanted additional burden to you. Or unrelated term may be having hidden meaning which you are not aware.
Due Diligence: Its best practice to undertake the due diligence prior signing the contract as to the party with whom you are going to contractual relationship. Check the reputation, financial soundness and deep analysis of the transaction specific investigations.
Think Before Ink: It is always better to take precautions read the agreement in entirety and understand and make sure your intentions are reflected clearly before signing the any agreement instead of inviting unwanted trouble unknowingly. Seal your deal with complete clarity all the time.
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