Tips to Avoid Common Contract Review Pitfalls

What things need to keep in mind to avoid contract review mistakes? Check out this PPT for solution. To know more about contract review, visit: https://bit.ly/21QxkGM

Transcript

1. TIPS TO AVOID COMMON CONTRACT REVIEW PITFALLS Presentation by: Cogneesol Inc.
2. What is Contract? What is Contract Review? Contract Review Process Why Get a Contract Reviewed? Common contract review mistakes Solutions to prevent them PRESENTATION FLOW
3. WHAT IS CONTRACT? A contract is an agreement between two parties which is legally enforced. It creates and defines the duties and obligations of the parties involved. Every business enters into contract with its employees, suppliers and customers to carry out its day today business operations smoothly.
4. WHAT IS CONTRACT REVIEW? Contract review involves reading and understanding a contract line by line to ensure neutrality. It should not contain any loopholes that could prove detrimental later on. In fact, reviewing contracts is a long process as it usually contains a large number many legal terms and conditions. If you are unsure about anything related to contract, it’s best to hire a contract review expert as he/she can explain you everything related to the contract, and even suggest changes that are in your best interest.
5. CONTRACT REVIEW PROCESS DRAFTING A contract is created. 1 REVIEWING The contract is reviewed. 2 NEGOTIATING You negotiate any changes you want to make to the contract. 3 SIGNING Finally, both agree to the terms and conditions and sign the contract. 4
6. WHY GET A CONTRACT REVIEWED? To identify any error(s) in a contract To find out if a contract needs any modification before signing To see if an agreement is drafted according to your needs or not To get a clear understanding of the contract Helps in analyzing the benefits and risks involved. Ensures that the terms and conditions within the contracts are lawful
7. When negotiating the terms of a contract, there are many pitfalls, even for those who have a lot of experience in this matter.
8. COMMON CONTRACT REVIEW MISTAKES AND SOLUTIONS TO PREVENT THEM
9. Mistake 1 Not Hiring Lawyers for Contract Drafting and Reviewing.
10. Suggestion: As contract contains a large number of legal terms, it can be difficult to understand for a layman. To avoid business disputes in future, you should hire a lawyer who can help you to understand the contract properly.
11. Mistake 2 Not Spending Enough Time on Reviewing Contract Properly.
12. Suggestion: You should devote sufficient time in reviewing a contract as it will help you in understanding the complexity of the topic, performing research, and organizing writings.
13. Mistake 3 Thinking that a Contract is Non-Negotiable or that Signing is Mandatory.
14. Suggestion: Learn to negotiate. Do not sign a contract if you believe that some of the conditions do not meet the needs of your company, leave them aside. Learn to negotiate with your partners about your contract.
15. Mistake 4 Incorrectly Numbered Sections and Misarranged Sections.
16. Suggestion: Make use of the same numbering system for the headings and subheadings. Come out with an early plan of how your contract need to look like. This certainly will work as a blueprint and help you in arranging various aspects and clauses in an appropriate manner.
17. Mistake 5 Many People Skip Creating a Final Draft and Later on Get Caught in Legal Matters.
18. Suggestion: Create your final draft . This will present you with revised and sharp point of view of your agreement and also assist you in reconsidering your arguments along with explaining your purpose .
19. Mistake 6 Signing a Contract Before Fully Understanding it.
20. Suggestion: Before signing any contract one should have clear understanding of the terms and conditions. This will protect you from any legal issues and help better decisions making.
21. A contract review is an important part for any new working relationship. Hence, it should not be overlooked. It is recommended to hire an expert even if you are good in drafting and reviewing contracts and have the ability to negotiate.
22. If you need assistance in contract management and reviewing related tasks, the legal experts at Cogneesol can help you!
23. Cogneesol is a leading ISO 9001:2008 certified company providing global business services like finance and accounting, legal support, insurance back office, data management, IT, and research & analysis to different industry verticals.
24. 30 Wall Street New York NY USA, 10005 Address: info@cogneesol.com Email Address: +1 646 688 2821 Phone number: Contact Details