Posted by Stephanie O Nelson on Feb 18, 2010
A small business owner will have to deal with many contracts: lease agreements, purchase agreements, distribution agreements, licenses, etc. Sometimes your business will draft a contract or negotiate with another party. The most common situtation, however, is receiving a contract to sign.
RECEIVING A CONTRACT
When a contract arrives on your desk, you might feel comfortable skimming over the legalese and signing your name. Don’t do it! The contract drafter structures the contract in their benefit. Therefore, a contract that ends up on your desk doesn’t protect your business. What should you do? Read over the contract and make changes. Many business owners feel that when they receive a contract, they cannot make changes. This is simply not true. In fact, you should make changes!
Check out some contract reading tips:
Startup Toolbox blog: Reading Contracts: What Am I Missing?
The Cohen Law Group: Ten Things To Consider Before Signing a Contract
And finally, talk to your business lawyer!