I have had several clients come to me because they had the same basic problem- they did not read their contract, they just signed it.? Only after they got into a dispute did they read the contract, or worse they got into a dispute, contacted me and I read the contract to them.? They had negotiated their contract for the compensation; but they neglected to realize that the fine print could take away their hard negotiated compensation.?
One client last year had a great deal to do training for a well know event planner?s school.? She was so thrilled to get the contract she signed it without realizing that the school could write off all of its expenses before paying royalties on the net.? She potentially gave away $100,000.? Fortunately, she was renegotiating the contract and was able to reword the language so the royalty would be on gross sales rather than net revenue.
A source of humor in my family is that when we make a purchase and they pass us a contract to sign, I will read through it prior to signing.? It must be a foreign event for most sellers, because they look astonished and shocked that someone would actually read the contract.? I know that may seem a little weird, but on several occasions I have deleted language from someone?s standard form because it was in contradiction with the deal at hand.
So why do people not read their contracts?? Usually it is because they don?t want to take the time, [Anyone who has taken out a mortgage knows that the closing process can take up to an hour just signing the forms.]; it?s boring [Let?s face it, it takes patience and fortitude to wade through a contract.]; or they trust the other party to do the right thing [We are all friends here, right?].
Here are a couple of remedies to these objections.? A good way to take care of the time factor is to obtain an advance copy of the contract prior to signing.? By doing this you can read the contract and see if you have any concerns and address them with the other party prior to closing the deal.? In my opinion, you really don?t have a good deal unless you understand what you are agreeing to.? You can outsource the contract review if you just cannot bear to read it.? Being friends with the other party is fine, but this is your business we are talking about.? It is better to verify then to be sorry later.? Not everyone has good intentions, and even friends can make a mistake and not put the intent of the parties into the agreement correctly.
The terms of a contract is just as important as the price.? Don?t set yourself up for trouble later.? I like helping my clients, and get them out of a problem situation, but this is not the way I like to meet them.? Before signing the contract, read it, understand it and know what is in your contract.
Source: http://businessnegotiationservices.com/do-you-know-what-is-in-your-contract/?utm_source=rss&utm_medium=rss&utm_campaign=do-you-know-what-is-in-your-contract
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