What Should You Look for Before Signing a Contract?

1. Who the parties are

Check the exact names. Is it you personally, or your business? Is it the company you talked to, or a separate entity you have never heard of? The name on the signature line decides who is on the hook.

2. What each side promises

Write it in your own words: what do they have to deliver, and what do you have to do? If something you were promised in conversation is not in the document, it usually does not count.

3. The total cost — not the monthly cost

Multiply the payment by the number of payments and add the fees. A $99 a month deal signed for three years is a $3,564 decision.

4. The payment schedule

• When is the first payment due?
• Is a deposit required, and is it refundable?
• Are payments tied to milestones, or to the calendar?
• Can they change the price during the term?

5. Fees

Look for late fees, setup fees, processing fees, restocking fees, and anything described as 'administrative.' Fees are usually legal and disclosed — the point is knowing they exist before you agree.

6. Automatic renewal

Many agreements renew themselves unless you cancel in a specific window. Find the renewal length, the notice period, and the exact deadline. Then put that deadline in your calendar the day you sign.

7. Cancellation and termination

• Can you cancel at all, and how?
• Does cancellation have to be in writing or sent to a specific address?
• What does cancelling cost?
• Can they cancel on you, and with how much warning?

8. Deadlines

Notice windows, delivery dates, inspection periods, and claim deadlines. A missed deadline is one of the most common and most expensive mistakes in any agreement.

9. Penalties

What happens if you pay late, leave early, or break a rule? Look for interest, liquidated damages, collection costs, and attorney-fee provisions.

10. Dispute resolution

Many contracts say disagreements go to arbitration instead of court, and name the state whose law applies and where the case would be heard. It matters more than people expect — a dispute two states away is expensive to pursue.

11. Your responsibilities

Insurance you must carry, condition you must maintain, approvals you must get, information you must provide. These obligations are easy to skim past and easy to break by accident.

12. What is missing or unclear

A blank line, a referenced attachment that was never given to you, a date left off, a price described as 'to be determined.' Missing terms are as important as the ones that are there. Ask for them in writing before signing.