Routine documents: what to check before you sign

Friday afternoon

A routine document usually arrives with a routine deadline. A supplier sends terms to sign by Friday. A landlord sends a renewal. A client sends their standard agreement with a note saying it is the usual form. Most of the time it is, and signing is the right thing to do. Now and then it is not, and the time to find out is before the signature, not after.

This is a general list of what to check in a routine agreement before you sign. It is not advice on any document, and it is not a substitute for an advocate when the document is unfamiliar, unusual or important.

Read all of it

It sounds obvious, but the most common problem is not reading the whole thing. Schedules, annexures and terms "incorporated by reference" are part of the agreement. If the document says it includes the other side's standard terms, or a policy on their website, ask for that text and read it too.

Who is bound

Check the names of the parties: the exact legal name of each person or business, and their addresses. If you are signing for a company or a firm, check that the document names the business, not you personally, unless that is intended. If anyone is giving a personal guarantee, make sure they know.

Money and dates

Find every amount: the price or rent, deposits, advances, fees, interest on late payment, penalties, and who pays taxes and charges. Check how and when payments are due and in what currency.

Then find every date: when the agreement starts, how long it lasts, whether it renews automatically, and any deadlines for doing something. Automatic renewal and short notice windows are easy to miss.

How it ends

Look for the clauses on ending the agreement. Can either side end it, or only one? With how much notice? Are there charges for ending early? What happens to deposits, materials or data when it ends? An agreement that is easy to enter and hard to leave deserves a second look.

Changes and notices

Check whether the other side can change the terms on its own, and how you would be told. Check how formal notices must be given: by post, by email, to which address. A notice sent the wrong way may not count.

When things go wrong

Most agreements say what happens in a dispute: which courts, which place, and sometimes arbitration instead of court. Look also for limits on liability and for indemnities, where one side promises to cover the other's losses. These clauses decide who bears the cost when something goes wrong, and they are worth understanding before you agree to them.

Stamping and registration

In India, some documents must be stamped, and some must also be registered, under stamp and registration laws. Which documents, and how much duty, depends on the type of document and the state. A long lease of property, for example, is the kind of document where registration may be required. If you are not sure whether your document needs stamping or registration, check before signing; an advocate can tell you. The laws themselves are published on India Code, and the guide to rent agreements covers stamping and registration for a residential tenancy.

When to stop and ask

Ask a qualified advocate before you sign if the amounts are large, the term is long, you are giving up rights or taking on unlimited liability, property or employment is involved, or you simply do not understand a clause. "Is this safe for me to sign?" is a question about your situation, so it is a request for legal advice, not information; the article on that difference explains why. If you go, take the document and your questions; the checklist for meeting an advocate helps.

How AI Lawyer is planned to help

Help with drafting and reviewing routine documents and contracts is one of AI Lawyer's planned features. The plan is help with routine documents, step by step, while anything that needs judgement on your facts goes to an advocate. It is planned, not built. Businesses may also want the guide to compliance checklists, and everyone can read what AI Lawyer plans to do and what it will not do.