Signing is the moment words become obligations. Many commercial disputes begin not with bad faith but with a clause nobody read closely or a duty understood differently by each side. Here is a practical list for reading any commercial contract before you put your name on it.
Confirm the parties and their capacity
Write each party’s full legal name as it appears in its official documents, and verify who is authorised to sign on the entity’s behalf. A signature from someone without authority can weaken the contract when you least expect it.
Define the obligations precisely
- Scope of work or supply: what exactly, to which specifications?
- Timelines: when work starts, when it is delivered, and what delay means.
- Payment: the amount, how and when it is paid, and what late payment triggers.
- Delivery and acceptance: how both sides confirm that work is complete and conforming.
Understand termination and liability
Ask yourself: what if I want out, and what if the other side does? Look for notice periods, early-termination triggers, possible compensation and any cap on liability. Clauses that look procedural are usually the ones deciding who bears the loss when things go wrong.
Decide how disputes are resolved
Check which forum hears disputes, whether the contract provides for arbitration or the courts, and which language and venue apply. Choosing the dispute mechanism while drafting is far easier than agreeing on it after the parties have fallen out.
Keep documented copies
Keep a signed copy of the contract and its annexes, plus any correspondence that amends or clarifies what was agreed. If something changes during performance, record it in writing rather than relying on a verbal understanding.
