Whether you're signing an employment contract, a lease on a new commercial space to start up your own business, or even signing a contract with a vendor, you need to understand what you're getting into. Contract law can be quite an extensive practice, and the intention is essentially to protect both parties in most cases. While it may seem nice to get into agreements verbally and verbal agreements in most cases are legally binding, those cases tend to get more complex to try to prove they happened.
How contract law protects both parties
While they may seem too wordy or appear to be written in complex English language, contracts typically state the requirements expected from all parties involved. These show each party's responsibilities and what happens when those responsibilities are not met.
Sometimes people may say things such as ‘I didn’t agree to that’ when a contract clearly states what the requirements and parameters are.
What to do with every contract
Whenever you receive any contract, you should hand it over to a legal professional for review thoroughly before you sign it. That means reading it carefully and making sure that you understand everything. Such as the term and duration of the contract, your obligations and what the contract expects of you in case you are in breach of it.
Do not assume that contracts are just a piece of paper. They are legally binding agreements between parties that hold you personally liable should you not meet your obligations.
What can happen with a breach of contract law
This is why it's important to review and understand a contract's entirety to ensure you understand the ramifications of a breach. If you have built out a good contract or worked with an excellent lawyer, typically, a breach of contract (where someone doesn't fulfill their duties) can lead to a termination of the contract and nothing more.
Yet there are times, especially with business contracts or even lease agreements (which is also a contract to review), that if you don't set the requirements, such as delivering a product on time or paying rent on time, there could be a monetary penalty for every single breach. If the contract does not clearly state it, these monetary breaches can have no limit or be whatever the state legal limit is.
In the end
Signing a contract without reading it will only cause headaches down the line if it later turns out that the terms are not appropriate or unfair. Take the proper time in advance to confirm the contents before signing anything.
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