Contracts have become a basic requirement for people as well as business, making it imperative to master the skill of contract review and legal implications before entering into the contracts. Contract law is the legal framework linked to an agreement which protects both stakeholders. The contract will cover every aspect of personal or business interactions which involve two or more parties. The contracts will outline guidelines on which agreement has been reached and outline laws protecting each of the stakeholders. Before entering in to and signing a contract each stakeholder needs to review the contract in detail before accepting the terms. It is advisable to review every term in detail to ensure the agreement meets your expectations and does not place unfair terms on each stakeholder. Some Important points to consider while reviewing a contract include:
General contact details
The first step linked to reviewing any contract is assessing the main including contract party names, contract agreement title, correct signature and classification of parties, and clearly defined statistics. The contract must specify the above points in detail and this needs to be closely reviewed first.
Contract party names
A contract must be drafted using the legal names of the stakeholders and parties for the contract to be legally binding. Nicknames and other unofficial names should not be used on legal contracts as this will result in the contract being classified as null and void. Each of the parties must present their legally recognized identity documents such as a passport. The contract will then be framed using the given names on the identity documents which will safeguard stakeholders.
Identification document details
It is also important to quote a universally recognized identification documents number which is unique and one which can be used to verify the individual at a later stage. Passports are an internationally recognized document making them the best identity documents. There are various other documents which can also be used as ID proof such as drivers licence, social security numbers, voter cards and national identity cards. Each nation will have a unique set of legally recognized documents which are accepted as contracts identify proof. Prioritize on using local identity cards as certain documents are not recognized outside a nation’s borders.
Check that statistics and amounts are clearly defined
While reviewing the draft also make sure the amounts, figures and statistics are mentioned in the agreement. This includes specific dates when the parties are expected to make the payment, instalment rates, transfers and other details. This is critical towards ensuring clarity has been shared with relation to the agreement guidelines thus eliminating the chance of disputes at a later stage. All agreed details relating to the contract must be mentioned on the contract to deliver maximum clarity on the subject.
Contract agreement title
The contract agreement also needs a clear title outlining the type of agreement. If you are drawing a rent or lease agreement, the contract title must be stated as a “Lease or Rent contract for (Particulars)”. Contracts should not be drawn informally and should follow the nations legally pre subscribed contract format. Many templates are available online for free, based on which the framework of the contract can be designed.
Parties and Witness signature and supporting documents
A Contract is only legally abiding if both parties have willingly agreed to sign the contract in front of witnesses. It is mandatory to check the 1st and 2nd Parties details, as well as witness details, are in order and correct. Special attention should be placed towards checking the 1st and 2nd Party have been added to the right positions to avoid contradicting the agreement.
Contract registration and legal fees
With the details on the contract draft verified, it’s critical to make sure the contract has been legally revised and all legal formalities followed to register the contract. Most constitutions globally will only recognize a contract if it is legally registered and legal fees paid for the registration of the contract. Legal registration fees can range from being a basic fee to a percentage of the income generated from the contract agreement. Examples of this include rend agreements which attract a standard fixed fee for registration whereas property sale contracts which involve a certain percentage of the agreed sale price.
Special attention on the Terms and conditions
A contract consists of specific terms and conditions which outline the criteria and guidelines based on which the agreement and contract have been drawn. It is therefore extremely important to review the terms and conditions in detail to make sure you understand the guidelines in detail. The terms and conditions will specify the guidelines based on which an agreement is being entered thus each stakeholder needs to review the contract terms to determine their interests are being safeguarded before signing in agreement. The terms and conditions should be ideally reviewed by a legal practitioner to ensure accuracy and the terms abide by the Law. Terms and condition that are not covered by the law assignment must never be included in the contract as this is likely to result in converting the contract to being illegal and not recognized by law.
Contracts are a basic requirement for every business and many individuals today require entering into written contracts to avail services. This makes it important for each individual to be capable of reviewing contracts and understanding the criteria based on which a contract needs to be read and understood. Most services today require an individual to sign a contract thus it’s important to develop your contract reading skills as well as be capable of reviewing the laws about the contract to protect your interest. Failing to review and understand contracts can result in serious legal disputes where an individual may have failed to understand the guidelines which may be manipulated at a later stage and used against the individual or company. Contract law assignment is designed to protect all parties entering in to contract agreements but it’s important that parties be capable of reviewing the laws to ensure you are protecting your interest.
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My name is Thomas Smith. I have worked as a content writer for various publishing houses through my career. I have 12 years of overall writing experience out of which the past 3 years have been as a writer for Assignment Writing Help. I have also published various articles and blogs on education and career building.