What Terms Should I Avoid In A Contract? (Video)

What is fair in a contract? Accepting certain terms may have unintended consequences and must be considered carefully. Learn more about managing the risks and rewards of a contractual agreement.

Full transcript:

I’m often asked by clients, “should I agree to this term in the contract?” This is often a prelude to a discussion of what’s fair in the contract. The answer depends on the exact circumstances, but the analysis is always the same.  A contract is an agreement between two persons that is enforceable at law. It is really no more than the allocation of risks and rewards among the parties. The balance of risks and rewards is a business decision, not a legal decision. But some risks may have unintended consequences and must be considered carefully. Remember that performance of contracts is judged strictly.