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5 Sections Of A Contract Clients Should Always Review

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5 Sections Of A Contract Clients Should Always Review

Since a high number of potential clients are using Court Buddy to get matched with attorneys for contract drafting and reviewing, we decided to write an article about the basic sections of a contract that should be reviewed carefully by a potential client.

Of course there are many different types of contracts that serve many different purposes.  And while there isn’t a one-size-fits-all contract and all contract sections should be carefully reviewed, there are several sections that a potential client should pay extra attention to in every contract.  Here are 5 basic contract sections that a potential client should review carefully before signing the contract.

 

1.  The parties to the contract.  This section of the contract is important because it tells the potential client who they are entering into an agreement with. Is it another person or several people? Is it a business? Is the client signing the contract on behalf of their business or in an individual capacity? Are the names of all parties spelled correctly?

2.  The “money” terms. This section of the contract is important because it deals with the money. Does it clearly lay out how much a good or service will cost?  When, how much, and how long will the potential client have to pay the other party or will the other party have to pay your client?

3.  Venue and Governing Law. This section of the contract explains what state law applies to the contract and the location where a dispute must be brought if there is a disagreement. States may have different laws, so knowing which state law applies to your potential client’s contract is critical to understanding their rights. Similarly, knowing where the potential client must bring a claim under the contract is important.

4.  Attorney’s Fees. Some contracts have a section that states that a losing party in a dispute has to pay the winning party’s attorney’s fees and costs. This is an important section to your potential client because they may be able to get their attorney’s fees reimbursed if a dispute arises out of the contract and your potential client wins.

5.  Signature page. This section of the contract is so obvious that it often gets overlooked. Did all of the parties sign the contract? These are just a few of the sections that your potential client should carefully review prior to signing a contract. However, every section of a contract is important. If the contract is still confusing to your potential client, at least they still have you to review it with them.

 

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