29/03/2022
Do contracts scare you?
Scrutinizing contracts, legal documents, or anything that exceeds 200 words can be daunting. But, if you want to save money on lawyers' fees, here are some tricks and tips to reading these documents like your attorney might.
Tip #1: Read EVERYTHING
Reading something entirely to the end sounds simple, but it can be more challenging than you think. For example, when you sign up for something on the internet, do you click on the Terms and Conditions link and read the entire document?
Lawyers are some of the few people left on earth who read everything put in front of them. And for a good reason: once executed, you will be held accountable for every word in that legal document you just signed. As a result, I routinely find spelling mistakes, clauses that don't apply to the transaction or terms that don't match prior discussions. Yes, there is a lot of legal jargon, but you may be surprised to see how much you can understand.
In addition to catching mistakes and getting a general understanding of what you're signing yourself or your company up for, you will be better prepared to discuss the matter with your attorney and ask relevant and intelligent questions, thus saving time and money in fees.
Tip #2: CHECK Every Reference
This tip is pretty self-explanatory. If the document mentions another document, read that document too. Make sure its inclusion makes sense and is appropriate. If there is a list of attachments, make sure they're all included. If there is a reference listed, go to that reference and make sure it is consistent with the rest of the document. Ensure every reference, footnote, attachment, enclosure, etc., tie together in a way that you understand.
Tip #3: QUESTION Everything, especially things that don't make sense.
If you have read a clause, sentence, or paragraph that doesn't make sense, definitely question it because you will be held accountable for every word in that document.
On the flip side, if the document states something that, when taken at face value, contradicts what the other party is telling you it means, you should question that.
Tip #4: Be sure to CLOSE Open-Ended Terms
It's not uncommon to run across terms that specify a "reasonable" time frame, or "reasonable" quantity of something, or "reasonable" efforts. This term is used quite a bit in a legal document but is very vague and highly susceptible to individual interpretation. If possible, put a number, date, quantity, time frame, or anything that is objectively measurable.
Tip #5: Imagine The WORST-CASE Scenarios and Draft Accordingly
You may have noticed that many Lawyers will respond with a doom and gloom answer when asked a simple question. Lawyers learn how to protect against everything horrible and unholy that might occur in the future and create legal documents to protect us when deals go badly. If you think about it, when was the last time you checked your Cardholder Agreement? Probably never. But if your card were stolen and used, you'd read every word to ensure you are covered.
So try to imagine possible ways that whatever deal you're working on could go wrong, draft terms that will guide you and prevent conflict, and outline suitable methods to address the situation should conflict occur.
I hope these tips help. However, if you need additional advice or assistance regarding a contract or agreement, give Philip Boni at Resolute Legal Ltd. a call - 345-938-6392. We'll work with you every step of the way.
