Many small or medium business owners think that having a lawyer review a contract is a waste of time and money.

However, even if the contract is unlikely to change, having a lawyer review a contract before signing can save a business time, money and headaches in the long term.

Not convinced? Keep reading for some more reasons why a legal review of a contract can benefit your small or medium business.

Know what is required and your rights

When you sign a contract for your business, you need to fully understand what is required of your business and what your rights are. You cannot carry out your obligations or enforce your rights if you don't know what these are.

A lawyer will read the contract and help you understand what your business is agreeing to do. By having a lawyer explain the contract, business owners and staff can manage their contract performance. Managing contract performance helps reduce the risk of breaching a contract and having costly disputes.

A lawyer will also help you know what legally enforceable rights your business has. Knowing what these rights are, mean your business can use them if the other party is underperforming or breaching the contract. 

Avoid risky business

Having a lawyer review your contract will also help your business enter a transaction with open eyes. 

Contracts will often have clauses that will expose your business to legal or financial risks. A lawyer will identify and talk you through these risks. This knowledge will help you to decide if the risks and other conditions can be managed by your business. Not all risks will be worth it. Knowing the risks will also help you identify when to walk away from a risky deal and find an alternative.

Fix mistakes and identify uncertainties

Sometimes the rush to get the contract signed means there are mistakes in the contract. For example, the pricing or the description of the products or services is wrong. 

The contract may also have unclear or uncertain requirements. This can be disastrous. The contract is evidence of the pricing, scope and requirements agreed by the parties. It may be performed or disputed based on the mistakes or uncertainties within the terms and conditions. 

That is why it is so important to identify and attempt to correct mistakes and uncertainties before signing. Otherwise, your business is at a greater risk of disputes and misunderstandings down the line.

A review by a lawyer is an essential step to identify these mistakes and uncertainties before it is too late.

Understanding the legal language

Contracts are often full of legal or complicated language. They can also be lengthy and hard to understand for business owners. A lawyer can cut through all that text and legal jargon and explain the contract in plain English. This will likely save a business owner a lot of time and headaches from trying to read and understand a contract themselves.

Conclusion: Safeguard Your Business with a Legal Contract Review

If you don't love reading contracts – you are not alone. SLB Legal can review your contracts so that you are aware and understand your rights and requirements before you sign. This review could be the difference between your business protecting itself and losing money due to costly mistakes and disputes.

Click here and book a free 15 minute call with SLB Legal before you sign a contract for your business.