Review Your Contracts Prior to Signing
It is important that you review any business contracts and leases prior to signing, and that you seek the advice of an experienced business attorney prior to signing. While every provision in a contract is important, here is a list of the top five provisions that oftentimes do not get the close attention needed in an business owner’s review of a contract or lease:
- Are you limited to arbitration to resolve any claims? If you are limited to arbitration, then you will not be able to seek any relief in court.
- Which state’s laws apply to your contract or lease? If a state’s law other than Minnesota applies, you need to know the application of that state’s law which applies to the terms of your contract or lease.
- What venue applies to your contract or lease? If another venue outside of Minnesota applies, then if there is a dispute, you are subjecting yourself to resolving the dispute in that different venue.
- Who has to pay attorney’s fees in the event of a dispute or is the contract silent on that matter? If the contract is silent, then generally under Minnesota law (there are exceptions), both parties have to pay their own attorney fees.
- When does the contract or lease terminate, and under what circumstances does the contract or lease terminate? Please note that depending on the provision, some contracts or leases may automatically terminate unless the notice to cancel have been provided, and it is not uncommon for notice periods to be sixty (60) or may days prior to the termination of the contract or lease.
It is important that you understand all of the terms of a contract or lease prior to signing it. It is equally important that you have an experienced business attorney review your business contract or lease prior to signing it. Once the contract or lease is signed, generally you will be stuck with the terms, even if those terms turn out not to have been in your best interests.
Spangler and de Stefano, PLLP assists business owners with most aspects related to their business, including contracts and leases.
The material contained herein is for informational purposes only, and is not intended to create or constitute an attorney-client relationship between Spangler and de Stefano, PLLP and the reader. The information contained herein is not offered as legal advice and should not be construed as legal advice.