Read the fine print before signing a contract
A contract is an agreement between two or more people that is legally enforceable.
Generally, persons may enter into a contractual arrangement on a wide variety of matters ranging from employment to obtaining a bank loan. Other typical contracts are prepared for marriage, divorce, leases, a home purchase, a vehicle purchase and for all types of insurance.
The advantage of a written contract is that it provides protection against a poor memory. Over time, even honest people may remember their agreements differently. Should differences occur, the written agreement serves as an easy way to verify the terms of the agreement and avoid a costly legal dispute.
A written contract also has disadvantages. Consumers eager to make a purchase may feel compelled to sign a printed form contract that actually favors the seller. For example, some contracts attempt to limit warranties and have wording that indicates consumers must pay the seller's legal fees if the seller sues. Some contracts have technical terminology that is difficult for a non-lawyer to understand.
Here are some additional tips to consider before signing a contract.
- Do not assume that a printed form contract must be okay.
- Do not be intimidated by aggressive sales people or overly trustful or friendly ones.
- Read the entire contract carefully, including the reverse side, before signing it. Ask questions about any part of the contract that you do not understand. Accept the fact that the other party has no obligation to tell you how to get terms that are more favorable to you.
- Do not sign a contract that has any blank spaces - either cross them out or fill them in. If there are parts of the contract which you do not agree to, cross them out; if parts you verbally agreed to are missing, write them in.
- Be certain to obtain a complete, accurate, signed copy of the contract and keep it in a secure place.
- Hire an attorney to review the contract before you sign it.
Note: This information was prepared as a public service by the Illinois State Bar Association and is a joint project with the Illinois Press Association. Its purpose is to inform citizens of their legal rights and obligations.
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If you have questions about the application of the law in a particular case, consult your lawyer. The law is constantly changing. Information on this site or any site to which we link does not constitute legal advice.