Five Contract Terms Worth a Second Look

Contracts are easy to skim and hard to undo. A careful read of a few key provisions can prevent surprises later.

1. Indemnification

An indemnification clause may require one party to cover the other's losses in certain situations. Understand how broad the obligation is and whether it is mutual.

2. Limitation of Liability

These provisions can cap or exclude certain types of damages. They may significantly affect your remedies if something goes wrong.

3. Termination

How can the agreement end? Look for notice requirements, termination fees, and automatic renewal terms.

4. Dispute Resolution

Many contracts require arbitration or specify where disputes must be resolved and which state's law applies. These choices can shape any future dispute.

5. Payment Terms

Confirm amounts, timing, conditions, and consequences for late payment. Ambiguity here is a common source of disputes.

Understand Before You Sign

Kiwan Law offers careful contract review to help you understand obligations, risks, and important provisions before you commit.