Some of you may agree that a rare and not-too-hot weekend is perhaps not a good way to spend time indoors reading a lengthy contract. However, weekends tend to give some of us uninterrupted time to focus (a.k.a read) on a rather lengthy contract for providing evaluation services for a client.
Let me tell you a short story.
Ashton Kutcher’s character, “Colt,” in the Netflix series, “The Ranch” makes a remark about reading contracts in Season 1, Episode 6. In this episode, Colt says, “Well, nobody reads the contracts. All I saw was the word ‘beer,’ and I was like, ‘Where do I sign!?'”
This humorous line highlights the common tendency among people to overlook or not thoroughly read contracts before signing them, particularly when attractive offers or perks are involved. (In my case, there wasn’t anything attractive so to speak, only work-related.) 🙂
My point is that it’s essential for all business owners, including Colt in the show, to take contracts seriously and understand the terms and conditions they are agreeing to in order to avoid potential issues or misunderstandings later on.
Image 1: Colt’s comment on (not) reading contracts and signing away. 😃
Image 2: What I read in the contract that I was about to sign. 😅
I am glad that I caught the clause and thankfully did not sign the 15-page document because I know for sure that I couldn’t fix a chiller even if my life depended on it. 😯
So, folks, reading is indeed fundamental!
When reviewing a contract, some aspects that should be read carefully include:
1. Scope of work: The contract should clearly outline the scope of work, including the specific tasks or deliverables that the consultant is responsible.
2. Payment terms: This section should detail the consultant’s fees and how and when they will be paid. It is essential to ensure that the payment terms are fair and reasonable.
3. Confidentiality and intellectual property: The contract should include clauses that protect the confidentiality of the client’s information and the ownership of any intellectual property created during the project.
4. Termination clauses: It is crucial to review the termination clauses to understand how the contract can be ended and what the consequences of termination may be.
5. Liability and indemnification: The contract should clarify who is responsible for any losses or damages that may occur during the project, and how these will be compensated.
