An agreement enforceable by law forms a legally binding contract stipulating the terms and conditions of any kind of transaction between two or more parties. A well drafted contract defines the scope and purpose of the Agreement, payment terms, set the rights and liabilities of the parties to the contract along with the obligations of the Parties including the manner of performance of the obligations under the Contract.
A contract is the cornerstone of every transaction that serves as a rule book for the transacting parties to conduct their business. Due to this very reason, before signing an agreement to form a legally binding contract, it is imperative to review it to ensure that there are no unnecessary liability or risk exposure to individualor business organization intending to go through with transaction of any nature.
Contract review is an important tool that reflects the understanding of the transacting parties towards the agreement in question, ensures that these parties are on the same page, and makes room for renegotiation of the terms, if necessary, so that the interests of a party are well secured.
WHY IS IT NECESSARY TO CHOOSE A LAWYER TO REVIEW YOUR AGREEMENT?
When it comes toreviewing any Agreement, hiring a lawyer should be the topmost priority, for the simple reasons provided below:
Protection of business interests
With an agreement, it is vital for a business and its owner to understand what their signature can get them into. Getting an agreement vetted by a lawyer not only gives a detailed knowledge of the key risks and issues associated with the agreement but also provides the solutions to mitigate the same. Appointing a professional will help you to secure more favourable terms in agreement that could benefit your company in the long run.
Interpretation of the Legal Language
Agreements generally have formal and technical language, i.e. legalese, which is complicated for a layman to understand. Many people skip over the terms which they are not able to understand or use online search engines to try to find out the meaning of such terms/ clauses. Problem which arises here is that every agreement is different, every transaction is unique and therefore the interpretation of such terms/clauses by an online search engine e may not fetch appropriate answers. Hence it is always recommended to turn to a professional for guidance, else one might agree to some obligations and risks thatthey do not intend tohave due to the lack of legal knowledge.
Increase your negotiation power
Well thought through negotiationsare always a better than to agree to something that may give risk exposure to the Parties or end up in a party receiving lesser than what they should as per the existing standards. A lawyer can easily identify the potential problems and risks that can come up in future and help you with negotiating better terms so that you can extract the maximum profit out of a transaction.
Ignorantia Juris Non Excusat
Simply put, ignorance of law is not acceptable in the court of law. The Parties are expected to ensure that all the terms and conditions of the transactionare well defined and are put together as per the applicable laws so as to make the agreement enforceable in the court of law. Lawyers have extensive knowledge of the prevailing laws and can thoroughly scrutinise the agreement for you so that all the legal requirements are duly complied. Lawyers ensure that the terms of the agreement are not infringing the laws of the land and that the final contract is legally valid. Therefore, it is always advisable to consult a lawyer to ensure adherence to the applicable laws, otherwise, if at any time a breach or a hurdle occurs, one cannot take the defence in the court that he was ignorant of the law.
Prevention is better than cure
Saving the expenses initially by not hiring a lawyer to review agreements can lead to spending huge amount of money on litigation in future. Seeking review before executing an agreement can also help you avoid bad contracts that can cause major problems for your business and also avoid incurring unnecessary litigation expenses at a later stage.
Today, it is true thatan individual thinks twice before hiring a lawyer considering it to be an unnecessary expense and prefer to rely on onlinesearch engines and discussion platforms to save extra cost; however when a trouble crops up, which eventually does sooner or later, their carelessness comes back to haunt them.
Lawyers tend to ensure that the contract is air-tight and has little or no scope for exploitation.When it is about scrutinising important legal documents, hiring an experienced and qualified lawyer is always the best thing to opt for as they have the ability to identify potential problems and pitfalls in any given transaction.