A contract is a written document that states the terms of function, liability, rights, execution of duties, and all other intricacies of an agreement among the contracting parties.

It is essential to have a contract that is exclusive and includes all the necessary clauses. There should be a valid understanding and consent given to the contract. Special attention should be paid to keeping the contract free of absurdities, vague usages, or void clauses.

Contract Reviewing is a process of cross-checking and re-evaluating the clauses in the contract. This not only helps you reassure that the clauses inserted are in consonance with what was agreed between the parties to the contract but have a valid legal document.

What can go wrong if the contract is not reviewed?

It is always important to review and proofread the whole contract thoroughly at least once after it is drafted.

• The clauses may have lost their exact essence while being translated into writing, as it was orally agreed upon by the parties.

• The whole contract may stand invalid if they do not adhere to the basic elements that constitute a contract, such as free consent, competency to contract, lawful object and consideration.

• The contract may have failed to preserve your rights.

• Any discrepancies in the terms and conditions can affect the contracting parties in the long run.

• It can lead to a breach of contract or act beyond the scope due to loopholes in the rights and obligation clauses, consideration clause, confidentiality clause, assignment of powers, etc.

Essentials of Reviewing a Contract

Some of the crucial criteria to be reviewed are:

1. A readable document: It is necessary to have a clear and simple language. Therefore, one is bound to check for spelling errors, usage of grammar and formatting.

2. Contents of the document: Does the document contain all clauses as negotiated by the parties and their representatives?

3. Legalities: Are all the legalities fulfilled, such as Stamp duty, Registration clause, consideration clause, etc.

4. Limitation of Liability: Financial risks involved in various agreement types.

5. Delegation of powers: Powers assigned to a client or an agency to function on behalf of the first party in contracts such as IP agreements, staffing agreements, etc.

6. Rights and Liabilities: The rights and obligations of both parties are specific and free of any ambiguity.

7. Dispute resolution: Terms and mode of dissolution of dispute, if any arose should be clearly mentioned.

8. Confidentiality clause: It is essential to mention the time period, that is applicable to such contracts.

9. Boilerplate clause: It is necessary to have these clauses added in every contract, it steers clear all possible loopholes in a contract.

10. Proofread the whole document after it is reviewed once and check the formatting of the overall document.

How to protect your rights?

Review should always be done keeping in mind the initial needs and the negotiated terms arrived at by the parties.

• It is a profound usage of using templates for drafting contracts, it not only adds the risk of having unnecessary clauses but losing out on adding crucial clauses, such as period of extent, and the liabilities and rights of the parties signed.

• Revisit he context of why a certain clause was to be added in case to any ambiguity.

• Having boilerplate clauses added to the document, it is an adopted practice to prevent possible loopholes.

Conclusion

Reviewing a contract reassures that all the terms and conditions agreed upon are translated into writing in the contract. It provides a proper understanding among the parties as to the functionality and resolution of any disputes during the contract.  The process also ensures smooth functioning and binding to respective obligations by the parties.

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