6 Quick Checks to Do Before Signing on the Dotted Line
Most companies, regardless of their size, regularly enter into contracts with customers, suppliers, or employees.
While it might seem like the hard work is done once you’ve agreed on the substantive obligations and legal terms, it’s crucial to do a final check to confirm that all details are completed and the contract is ready for signing.
Every day, we see companies entering into contracts that are incomplete or inaccurate.
This can have serious repercussions when it comes to enforcing the contract, creating confusion and potentially even disputes about whether the contract is enforceable, who it is enforceable against, and when it came into effect.
Use this quick checklist before signing any contract to ensure you’re fully prepared to sign on the dotted line.
1. Have all the negotiations been finalised?
Take one last look at the final document to confirm that all negotiated terms have been accurately captured.
Ensure there are no outstanding tracked changes or unresolved comments. This is something we see all too often, and it can lead to ambiguity or disputes later.
Resolve all tracked changes and comments now to avoid headaches down the line.
2. Have all fields been completed?
Partially completed contracts with empty fields are a common problem. Before you sign, carefully review the document for any highlighted sections or blank fields that need completion.
These might include crucial details like payment terms, dates, or party information.
Leaving fields incomplete could lead to unintended consequences, such as voiding certain clauses or sections of your agreement.
3. Are all schedules attached?
Many contracts include schedules or appendices that contain critical information, such as payment details or technical specifications. These documents are often negotiated separately and added later.
Before signing, double-check that all referenced schedules are attached, accurate, and complete.
Missing schedules can delay contract execution or lead to disputes if the agreement cannot be properly interpreted.
4. Is your legal entity correct?
This may sound basic, but even minor errors in your legal entity’s details can cause significant issues.
Verify that your name appears as the full legal name of your company, not just your trading name. Include company numbers or other identifiers, and ensure your registered address for notices is listed correctly.
These details should match the information registered with Companies House or the relevant authority, ensuring clarity about who is bound by the contract.
5. Is the other party’s entity correct?
Equally important is verifying the accuracy of the other party’s entity details. Perform a quick search on Companies House or a similar registry to confirm their legal name, company number, and registered address.
This step helps you avoid problems, such as signing with a dissolved, bankrupt, or non-existent entity.
Always include the full legal entity name rather than the trading name.
This is particularly crucial for cross-border contracts, where entity names and naming conventions can differ.
6. Has the date been added?
If you’re the last party to sign, ensure the contract is dated correctly.
Many agreements require a date on the first page or in a specific schedule.
Missing or incorrect dates can lead to disputes about when the parties’ obligations began.
Taking these steps before signing a contract can save time, prevent disputes, and ensure that your obligations under the contract are binding as intended.
At Hemisphere Consultants, we can help you streamline legal processes and implement signing procedures to give you peace of mind.
If you need support with contract review, negotiation, or execution, we’re here to help.