Wellington Lawyers: The Importance of Contract Clarity: Avoid Costly Mistakes
Contracts and agreements are a common part of our lives, from family businesses to everyday transactions. However, hastily signing a contract without a full understanding of its terms can lead to costly errors, as illustrated by the story of a brother and sister who entered into a shareholders‘ agreement without realizing the implications of its clauses. To prevent such pitfalls, we’ve compiled essential tips for ensuring that a contract aligns with your expectations.
-
Careful Reading and Clarification
Reading the contract thoroughly before signing is paramount. Look for any discrepancies between your understanding of the agreement and the contract’s content. If you find anything unclear or unusual, seek clarification or request revisions.
-
Digital Contracts
For digital contracts, be cautious of ‘draft’ watermarks or tracked changes. These indicate an outdated or unfinished version. Ensure that you’re working with the latest, finalized version.
-
Verify the Version
If you’ve negotiated terms with the other party, confirm that the contract you’re signing is the latest version. Look for excluded terms, incorrect definitions, or obsolete obligations that need removal.
- Witnessing Requirements
Certain contracts, often referred to as Deeds, may require witnesses. Ensure these requirements are met to make the contract legally enforceable.
- Obtain a Final Copy
If you sign the contract and send it to the other party for signing, insist on receiving a final signed version. This ensures clarity and helps prevent disputes over the enforceable version of the contract.
- Date the Final Version
Ensure that the final signed version of the contract is dated. This serves record-keeping purposes and confirms that it represents the final agreement.
- Caution with Internet Templates
Be cautious when using internet templates for contracts, as they may include international law clauses that do not align with New Zealand contract law, rendering them unenforceable. Even if it’s a New Zealand template, it may not account for recent legal developments or your unique circumstances.
Seek Legal Advice
Above all, it’s highly advisable to consult with legal professionals before signing any contract or agreement. Legal advisors can ensure that the contract accurately reflects the agreed terms and that witnessing is executed correctly, preventing potential costly issues in the future. Don’t underestimate the importance of contract clarity; it can save you from unwelcome surprises down the road.
Need a bit of legal assistance? Contact a Corelegal team member today and learn more about our legal services. You won’t regret it.
Aside from family law, we are commercial lawyers Wellington who offer legal services to help you.
You can click here to speak to a commercial lawyer and family law firm. We will give you a call to know more about your needs. We will explain to you how we can improve your affairs.
Contact
Lawyer Masterton | Commercial Lawyer Wellington | Asset Planning Lawyer | Wellington Property Lawyer | Wellington Relationship | Property Lawyer | Chinese Lawyer | Farm Sales | Farm Restructuring | Succession Planning
Address: Level 1,
109 Chapel Street,
Masterton 5840
Phone: +64 800 778 952
