What should I check before signing a contract?
The six clauses that cause most of the trouble, and where to find them in a document nobody reads.
- Difficulty
- beginner
- Time
- 30 min
- Read
- 2 min
Short answer
Read the term length, the notice period, the price-increase clause, the cancellation terms and what happens at the end. Those five cause almost every dispute, and they are usually near the back.
Nobody reads contracts in full and it is not realistic to expect them to. Reading the right five clauses takes ten minutes and catches nearly everything that later becomes a problem.
Step by step
- Find the term and the notice period.How long you are committed, and how much notice you must give. A 24-month term with 30 days' notice means deciding a month before an anniversary you will not remember.
- Check whether it auto-renews.And on what terms. Automatic renewal into a fresh full term is common and is where people find themselves locked in for another year.
- Find the price-increase clause.Many contracts allow annual increases by a formula. "Fixed price" sometimes means fixed for the first year only.
- Check the exit terms.What it costs to leave early. Some contracts require the full remaining balance, which makes leaving effectively impossible.
- Understand what happens at the end.Does it stop, continue monthly, or renew? Continuing on a much higher out-of-contract rate is the standard pattern in telecoms and energy.
- Look for what is excluded.In service and insurance contracts, the exclusions matter more than the cover. This is where the document is doing its real work.
- Check the cooling-off period.For contracts agreed online, by phone or at your door there is usually a 14-day right to cancel. In a shop there generally is not.
- Keep a copy of what you actually signed.Including any terms referenced but supplied separately. If they are not provided, ask — a term you were never given is harder to enforce against you.
Tips
- Verbal promises made during a sales call are hard to rely on unless reflected in the written contract. If it matters, ask for it in writing.
- Set a calendar reminder for two months before the term ends, on every contract. It is the single most useful habit here.
- Take your time. Pressure to sign immediately is a signal in itself, and genuine offers rarely evaporate within the hour.
Questions people ask
Which contract clauses matter most?
Term length, notice period, price increases, early exit charges, and what happens at the end. Those five account for most disputes.
Can I cancel a contract after signing?
For contracts agreed online, by phone or at your door there is usually a 14-day cooling-off period. Signed in a shop or business premises, generally not.