[GUIDE] Contract Review: Everything That Both Start-ups and Entrepreneurs Need To Know

Dec 6, 2022 | Business

When it comes to running a business, there are a lot of things to think about. You have to be clear on what your goals are, how you’re going to get there, and who’s going to help you get there. You need a strategy and a plan. But what about contract reviews? 

Contracts can seem like an afterthought—something you’ll get around to later on down the road when things slow down or when you’ve found yourself with extra time on your hands. But if you’re not careful, contracts that didn’t get a review end up costing you big time.

Well-executed contract reviews can help you avoid costly disputes in the future while protecting your company or career from liability. In fact, just read this remarkable story about The Ten Worst Contracts in Sports from Bleacher Report to know the astounding expense of contracts that were not reviewed or executed properly.

But reviewing a contract isn’t easy—and it’s even trickier if you’re not an attorney who offers contract review services. So how do you know if your business contract is legally sound? And how do you make sure it stays up-to-date as your business grows?

If you’re an entrepreneur, start-up, or business owner, you’ve probably had your fair share of legal headaches. If you’re a contractor, you’ve probably wished that there was a way to make sure your clients are paying up. No matter who you are and what your situation is, we’ve got the definitive guide to legal contract reviews for YOU! 

Josiah Young, your contract review attorney has your back.

We’ve put together this resource so that no matter what kind of business you run, whether it be brick-and-mortar or online, you have a contract review lawyer to help protect you from the worst situations imaginable—and even some that may seem impossible.

Read our definitive guide below so that start-ups or established entrepreneurs like yourself can leverage your business contracts to fast-track the growth of your ventures. You can use these best practices here so that your company stays compliant with all applicable laws and regulations, protecting yourself from liability should there be an issue with one of your agreements.

Let’s get right to it!

What Is the Importance of Contract Review?

As an entrepreneur, you need to ensure that your business is running smoothly and that you’re meeting all of your clients’ needs. And while you’re working to do this, it’s also important to keep an eye on your finances. One way you can do this is by getting a contract review attorney near you to review your contracts for you—both the contracts you sign with vendors and the contracts you agree to with customers. 

The purpose of a contract review system is to protect all the parties’ interests. In some cases, this means ensuring that a vendor will provide their services at a certain rate and quality; in others, it means making sure that customers know what they’re paying for upfront and won’t try to get out of paying for services rendered once they’ve received them (for example, if they don’t like the product).

Before signing a contract, it’s best practice to acquire legal contract review services to review it carefully. Here are a few reasons why:

  • A good contract with clear, unambiguous language will help you avoid misunderstandings and potential conflicts down the road, while a bad contract can lead to misinformation, misinterpretation, and other costly mistakes. These errors could have been avoided with a proper review. (e.g. government penalties for a tax filing non-compliance)
  • A contract attorney document review will allow you to plan for the future and make sure that everyone involved has clearly defined roles and responsibilities in advance, including anticipating critical events, dates, and re-negotiation and opt-out window situations.

What Is a Contract Review Checklist?

Contracts are essential for legal protection, but they can also be used to help you and your business get what you need from the arrangement. To do this right, it helps to acquire a contract review checklist so you don’t forget the vital parts of your business interests. 

With a checklist as a backbone of your contract review process, you can already ensure that your contracts are legally binding and provide the information you need for successful collaboration. Checklists are essential when outlining a contract review process flowchart for indemnification, confidentiality, dispute resolution, and termination.

It’s also ideal to have a business contract review lawyer you trust to help you with a contract review checklist template and help you look over your contracts before you sign them. The Law Office of Josiah Young, P.C. can help create a checklist for entrepreneurs or independent contractors like you to negotiate settlements or defend your cases in court when issues arise from a potential breach. 

They’ll make sure that all terms are clearly spelled out in a way that benefits both parties involved and helps prevent future problems from arising in the first place.

What Are the Benefits of a Contract Review?

The purpose of a business contract review is to lay out the terms and conditions of your relationship with another party. The interests of your business are protected by a well-written contract that ensures you can accomplish your goals while minimizing risk.

A contract review lawyer will also help you understand why you need a contract, what to look for in one, and how to negotiate it.  Here are a few reasons why it’s important to have contracts reviewed:

1. A contract review using a trusted contract review software can help clarify expectations between parties involved in a transaction. It can outline what each party is responsible for and what will happen if either party doesn’t fulfill their obligations under the contract. It helps to ensure that the accuracy, security, formatting, and tracking changes of the clauses in the contract are up to standard and legally enforceable.

2. A contract review (especially an employment contract review) helps protect both parties from unforeseen circumstances that could occur during a transaction, such as lawsuits and default clauses that dictate the potential ramifications of a breach of contract. 

For example, if an employee has an accident on their way to work or gets sick while at work, their employer may be liable for damages unless there is a clause in place stating otherwise (such as the “no negligence clause”).

3. A contract should be reviewed periodically to uncover outdated clauses and appropriate employment contract review costs, among many things. It can also prevent confusion and highlight problem areas for improvement.

Since circumstances often change over time, the contract review makes it possible for both sides to expose pitfalls of damaging risk and for parties to agree upon new terms if necessary without having to start over again from scratch every time something changes.

How Do You Effectively Review a Contract?

In order to review a contract effectively, you need to have the right mindset and approach. Here are some tips to help you get the most out of your review:

Understand Your Own Interests

The purpose of a contract is to clearly state what each party expects from their relationship and what they’re giving up in order to enter that relationship. A good contract should be clear enough that both parties understand exactly what they’re getting into before they sign on the dotted line. If you don’t know what you’re looking for before reviewing your contract, it will be difficult to identify whether or not it’s meeting your needs.

Know What You Want From the Relationship

You should also take time to think about what interests your business has in this particular relationship. What does it need from its partner? What does your boilerplate contract want to accomplish? These questions will help guide your review process so that you can make sure that all bases are covered.

A good contract review should accomplish two things: 

  • It should help you make sure your business interests are protected
  • It should help you understand the purpose of the contract itself 

The purpose of a contract is to provide certainty and predictability for both parties, and your review should be clear about what obligations each party has, and it should clearly define what happens if either party fails to meet its obligations. This is important because it establishes both parties’ responsibilities and helps reduce the risk of disputes. 

A good contract will also define what happens if one or both parties decide to end their relationship before the end date specified in the contract. For example, if one party wants to terminate its relationship with another party before the end date in an employment contract, there must be provisions in place that allow for this possibility while still protecting the interests of both parties involved.

Why Do Lawyers Review Contracts?

Lawyers review contracts because they’re the best way to protect your business.

Contracts are an important part of your business, no matter what stage you’re at. You need them to set expectations and to protect yourself against breaches of contract by other parties. They also help you establish a formal relationship with partners, vendors, contractors, and employees.

When you sign a contract, it should be reviewed by a lawyer who can help ensure that the terms are clearly defined and legally enforceable. A lawyer will also be able to help identify any gaps or areas where a contract could be strengthened or revised. This helps make sure that both parties understand their obligations under the agreement and protects each party from liability if something goes wrong down the road.

Lawyers such as Josiah Young, Esq. review contracts because they believe that it’s a critical part of running a business. A contract review helps you protect your interests, and they help you make sure that the other party is taking responsibility for their end of the deal. 

But there’s another reason why lawyers review contracts: because they’re written by other lawyers, who have a lot of experience in this area. That means they can look at the fine print with a fresh set of eyes, notice things that you might not have thought about, and make sure everything is done correctly.


    What Are the 5 Components of the Contract Documents?

The five essential components of any contract are:

1. Document Title: This is the main title of the document that dictates the overall purpose of the contract. Some title examples include: “Equipment Transfer” or “Purchase Agreement”.

2. The offer and acceptance: This is where you set out the terms of a deal and make an offer, with specific information about your requirements, and then the other party accepts.

3. A consideration: This is what you pay or promise to pay in exchange for getting something from someone else in a contract after every series of negotiations and before the parties sign it. It can be money, goods or services, or anything else of value (like an apology). But it can’t be just promises—there has to be something concrete offered on both sides.

4. A defined legal relationship: This is where you define whether there will be one or more parties involved in this agreement and whether their rights and obligations are clearly defined by law (e.g., employee vs. employer).

5. A consideration that forms the basis for the intended contract: This could be a document that specifies what will happen if either party doesn’t fulfill their side of the bargain. It could also be a statute in place that protects consumers from unfair business practices by making sure companies follow certain rules when selling products or providing services to customers.

Who Can Review a Contract?

The answer to this question depends on your business requirements and the type of contract you’re looking to review.

If you’re a business owner or entrepreneur and are looking for a lawyer to review your contracts before they get signed, then it’s important that the lawyer has experience in reviewing these types of contracts. If not, they may miss certain details that could have serious consequences for you later down the line.

If you’re a contractor who needs help with reviewing contracts from clients, then there are some things to keep in mind: 

  1. Check the lawyer’s financial stability
  2. Ask for references from previous clients
  3. Make sure they’ve been practicing law long enough (about 10 years) so that they know what they’re doing.

But how long does a contract review take? A lawyer will review your contract for as long as it takes to ensure it fulfills all legal requirements to protect you. They can help you understand what’s required in the contract and make sure you have the right protections in place. A lawyer will also advise you on how to interpret and enforce any terms that are not clear.

Get the contract review you deserve

So there you have it! You now know everything there is to know about contract review guidelines and getting the best contract review service for your business.

We can end this blog post by saying that contract reviews are an essential part of doing business because they protect you and your business in many ways. From making sure your contractors are paid on time to ensuring that you’re protected from lawsuits, a good contract can help you sleep easy at night.

A contract review also makes sure everyone is on the same page, especially if you hire trusted lawyers to review your contracts. That’s where The Law Office of Josiah Young, P.C. comes in. 

The Law Office of Josiah Young, P.C. is a trusted leading full-service law firm dedicated to helping entrepreneurs, start-ups, and business owners…

  • create long-lasting relationships with their clients or contractors
  • negotiate settlements through robust contract reviews

The company’s founder, Josiah Young, has already been a trusted name in the industry by already working with multiple clients across different enterprises. When you’re starting a new company, it’s important to know how to protect yourself legally. That’s why The Law Office of Josiah Young, P.C. offers contract reviews as one of its services to make sure your contract is fair and equitable so that nobody gets taken advantage of in the process of doing business.

Need help writing or streamlining your contract review?  From simple employment agreements to more complex commercial transactions, Josiah “Your Brotha-in-Law” Young can speed up the turnaround time and deliver you the contracts that protect you FIRST AND FOREMOST!

Send a message and we’ll get back to you stat.