Do you know what you’re signing up to? We are often instructed on a dispute where a business has entered into an important contract without either having a bespoke agreement in place or where there is a contract, but it does not reflect the pre-contract discussions.
Article / 3 Mar 2020
The pitfalls of not getting the contract right
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This can be problematic and can lead to a dispute. Successfully challenging the contract can also be time-consuming, a distraction to the business and expensive.
Tips on how to get the contract right so you can minimise the risk of a dispute:
- Ensure you have in place a written and tailored contract. Read the contract yourself and do not rely on what the other party tells you the contract says. You need to understand the contract and ensure it reflects exactly what has been discussed and agreed during the pre-contract discussions.
- If in doubt, seek advice. Contracts can be complicated and technical so take advice if there are any terms which are unclear.
- Ideally, no party should perform the contract unless and until the contract has been signed by all of the parties. Having a contract signed by all of the parties is crucial.
Further reading
Setting up a new IT system is a good example of when having the right contract in place is crucial. If your business is looking to set up a new system, read our article on how to avoid disputes when implementing a new IT system.