Keep An Eye Out For These Items
Whether you’re signing a real estate agreement, an employee contract or entrepreneurial contract, it’s important to carefully read over what you’re signing. In situations like a merger or acquisition, documentation is extensive and complex, and deserves quite a bit of attention to detail. You never want to be caught off guard about contract stipulations because you didn’t review carefully.
Five items that you should be looking for during a contract signing are as follows:
The terms of the agreement (open to negotiation)
The terms of agreement denotes the period that the contract is effective. You don’t want to be caught off guard or inconvenienced by dates. It’s important to carefully read the terms of agreement in a contract. Know how, when, and under what terms the contract may end.
The parties involved
Use complete names to avoid confusion. Always identify whether the individual(s) you are working with is married and if their spouse will be factored into the agreement (if for something like a purchase agreement or real estate contract). Make sure all negotiating parties are listed on the contract. You will also want to make sure the names are spelled correctly. A contract could become null and void if a party’s name is misspelled.
Clear quantifiable contract terms
Laying out clear and quantifiable terms is an important item to check for during a contract signing. An understanding of particular conditions or restrictions that are spelled out in a contract can help protect both parties in certain cases.
Deadlines and important dates
Put any dates on your calendar so you don’t forget to take care of something that’s your responsibility. If there are agreed-upon dates listed in the contract, take note of them. Missing deadlines can delay finalization of the agreement.
Fill out all the blanks
Don’t leave any sections blank. You could run the risk of having someone else fill in information for you. You don’t want to leave yourself open to fraudulent activity when it comes to a legally binding contract. Never allow someone other than you to go back in and fill out what you didn’t.
Need legal assistance for your new business in the San Diego area?
At Lee, Shome & Kennedy, LLP, in San Diego your solution starts here.
Whether your business is large or small, LSK will handle all aspects of your transaction. LSK’s attorneys are highly experienced in valuations, negotiations, due diligence, purchase agreements, and all other aspects of a M&A transaction. LSK will make sure it is completed in a straightforward and stress-free manner so you can concentrate on what is important.