Do you always read and understand every contract you sign?
I recently had to read a shareholders’ agreement that was more than 50 pages long and was starting to get a little cross eyed by the time I got to the end of it!
Contracts are a binding agreement.
A seemingly innocent clause could cause untold hassle at a later stage.
Misunderstandings can be costly and legal battles can be avoided from the start with a bit of effort.
Taking the following steps before you sign on the dotted line can help you avoid trouble.
1. Always read the contract. Then read it again. Properly. Without skipping bits.
2. Take your time. Do not feel pressured into signing quickly. If the developer is intimidating you before you start investing with them, imagine what they could be like during the project!
3. Always ask questions. If you do not understand something, ask. Question every statement that is not clear or that you disagree with.
4. Get legal advice. Consult someone with legal expertise. A lawyer can review the contract to ensure that your best interests are protected. They can also explain any legalese that you do not understand. 5. Be ready to walk away. If you have any doubts, do not sign. Be prepared to walk away from the investment opportunity.
We'd love to hear your contract tips. Share them with us in the comments below.