Browse Month: October 2017

5 Basic Things to Consider Before Finalizing any Contract

5 Basic Things to Consider Before Finalizing any Contract

Contracts are like a huge safety measure unless you plan on doing fraud! Any verbal agreement between two parties where there is money or valuables involved must be written down in a contract and signed by both parties (and more, if there are any).

The contract functions as an agreement that has you bound by the law and it is evidence that a transaction or an agreement actually took place. So before finalizing a contract and stashing it in your file of important documents, here are some things that you must keep in mind and act on.

Discuss the Terms and Conditions Beforehand

The parties involved in the contract must make it a point to discuss the terms of the contract before writing it up. Try to do this in an official meeting with impartial witnesses involved so people other than the involved members also know what to expect from the final contract that is written up. In this way, you will save yourself from coming across unpleasant surprises.

Help in Writing in Up

No matter who it is that is writing up the final contract, it is best if you are present there when they are doing so. Try to tally the points you agreed on in the meeting with the points that are actually being written up in the contract. Make sure the writer gets everything through thoroughly. Talk about any inconsistencies you come across during the writing period. Even if you don’t really see anything wrong in the contract that is being written up, you would at least have some peace of mind that the contract is exactly what you intended it to be.

Make Sure all the Necessary Signatures are Present

Almost every contract out there needs some basic signatures to be finalized before it is available to you or to the other parties involved. This signature could be of the attorney that is in charge of your case, the witnesses or a notary person. Make sure all the necessary signatures are present on the contract by yourself.

Thoroughly read through

Even after the final contract has been written up and signed by the noteworthy authorities, you need to read through the finalized piece before you sign it. It is actually a rule of thumb that you absolutely need to read every piece of paper there is before you sign it. So make sure all the required clauses are present and that you are not putting yourself under a legal liability by signing the contract.

See if the Contract Needs Witnesses

There are many legally binding contracts that need a couple of witnesses or notary people present during the time of the signature. Make sure all such people are present when you and the other parties are involved during the signing of the contract.

If you follow these steps all the way through, you will be saving yourself from the possibility of being scammed by frauds.