Contract Review Checklist

1- Focus mainly on vital provisions

You should focus mainly on important clauses such as indemnification, termination, confidentiality, and dispute resolution. This is not to say that you should ignore the rest of the contract, in fact, every line in the contract matters and needs review.

Dedicate most of your time to these provisions and address them first. An indemnification provision is vital since it addresses important issues as who will be responsible for loss and damages if there is a breach.

While reviewing these provisions, ensure to mitigate risks and protect your client's interest as much as possible.

2- Review default provisions

Make sure to go through default terms that might explain legal ramifications when a party does not hold up their end of the promise. Review options available for the party suing for breach. They might be boilerplates but they still matter.

As you review these clauses, you will have a better understanding of what recourses can be perused when things go south. Also, it will be clear to you what options are there if your client wishes to ends the contract early.

3- Check renewal and termination provisions

Before you sign the contract, make sure you understand the termination and renewal provisions; look out for automatic renewal language. Find out what is required in order to end the contract before the termination date.

4- Take notice of significant milestones

Make sure deadlines and dates match previous verbal agreements, track everything you will be responsible for once the agreement takes effect.

Reviewing the contract line by line can be time-consuming especially if the contract is lengthy or complex. However, contract review is the only way to avoid long-term risks to your business.