Contracts are the foundation of almost every business transaction, from hiring employees to securing partnerships and making purchases. However, sometimes, in the rush to seal a deal or the eagerness to move forward, we sign contracts without fully understanding what we’re agreeing to. You might later find yourself wondering, “Should I have a lawyer review this, even though I’ve already signed it?”
The answer is a resounding yes. Having a lawyer review a business contract after you’ve signed it can uncover potential risks, provide clarity on your obligations, and equip you to handle future legal disputes effectively. Here’s why it’s a good idea and how it can benefit your business in the long run.
Why You Should Review Contracts After Signing
1. Uncover Hidden Risks
Contracts are often filled with legal jargon and complicated clauses that may not be immediately comprehensible to someone without a legal background. By reviewing the signed document, a lawyer can identify hidden risks or unfavorable terms that you may not have noticed initially—like automatic renewals, penalties for missing deadlines, or restrictions on terminating the agreement.
2. Clarify Your Obligations (and Theirs)
A signed contract legally binds you to specific actions, deadlines, and deliverables. However, it’s not uncommon for businesses to misunderstand or overlook their full list of obligations. A lawyer helps clarify your responsibilities under the agreement, as well as those of the other party, helping you avoid breaches that could expose you to lawsuits or financial penalties.
For example, the contract may require you to give written notice months in advance to terminate an agreement. Missing such details could result in unexpected extensions or unwanted costs.
3. Prepare for Renegotiation or Amendment
A lawyer can also help you determine which parts of the signed contract might be renegotiated. If the agreement is particularly disadvantageous or restrictive, they can guide you on how to approach the other party for an amendment or an entirely new agreement. Especially when relationships are ongoing, changes to contracts are often negotiable even after signing.
4. Understand Remedies and Risks
If things go south—whether due to disagreements, contract breaches, or changing circumstances—what happens next will likely depend on what is in the contract. A post-signing review ensures you’re fully aware of your options and remedies in case there is a dispute.
For instance, does the contract force you into arbitration, rather than courts? Are there strict damages clauses? Being prepared can save you significant time and money in the event of a conflict.
5. Comply with Industry-Specific Legalities
For entrepreneurs and small business owners working in regulated industries (like healthcare, finance, or tech), contracts may include compliance requirements. Having a lawyer review the document can ensure you’re meeting those regulatory obligations, which reduces the risk of fines or reputational damage.
Case Scenarios Where It Really Matters
A Vendor Relationship Gone Wrong
Imagine you sign a contract with a vendor expecting prompt delivery of supplies but later realize that the delivery schedule in the contract is vague. Having a lawyer check the contract can reveal whether you have grounds to demand on-time deliveries or if you need to renegotiate terms.
Lease Agreements with Surprises
Commercial leases are notorious for hidden clauses. A lawyer’s review after you’ve signed could alert you to unexpected fees, repair responsibilities, or conditions that you may otherwise only notice when it’s too late. This information can guide how you operate within the lease agreement.
Employment Contracts for Key Hires
Hiring a high-level employee can involve restrictive clauses like non-compete agreements or intellectual property ownership that might have significant implications for your business. A lawyer can clarify these clauses, ensuring you protect your interests.
What to Do if You’ve Already Signed a Contract
1. Act Quickly
If you suspect the contract may include unfavorable terms or risks, don’t wait. Consult with a lawyer as soon as possible. Early review may prevent future conflicts or financial losses down the line.
2. Gather Supporting Documentation
Provide your lawyer copies of the signed contract and any related communications, like emails or meeting notes, for context. This can better inform their review and advice.
3. Discuss Next Steps
Once the lawyer has reviewed the contract, they will advise on your options—whether it’s compliance, renegotiation, or preparation for dispute resolution.
Prevention is Always Best
While reviewing a contract after it’s signed is an important stop-gap, the ideal approach is to involve a lawyer before you sign anything. They can negotiate better terms or flag areas of concern, sparing you potential stresses and costs later on.
Get Professional Guidance Today
Whether you’re navigating a complex vendor agreement, a multi-year commercial lease, or an employment contract, ensuring the fine print is in your favor is non-negotiable. If you’ve already signed a contract and want a lawyer to review it, or if you’re looking to get ahead of future agreements, professional legal advice can make all the difference.
Schedule a consultation today to safeguard your business and bring peace of mind to your business dealings.
