Learning for Better Living
Before Signing a Contract
Contracts are part of everyday life. Almost anything
you buy, sell, borrow, loan, rent, repair or trade
involves a contract.
You make a contract when you use a credit card, rent
something, buy insurance, or hire someone to paint your
A contract is a legal agreement between two or more
people. It spells out the terms of the agreement. A
contract can be oral or written. But it’s a good idea to
put a contract in writing. You do not need to use
special forms or legal language to write a contract.
- Shop around before you make a decision. Make sure you are getting a good buy or deal.
- Read the contract carefully. Make sure you understand it well before you sign it. Ask for help if needed.
- You can make changes in the contract before you sign it. But the other person must agree. Both of you should initial the changes when you sign the contract.
- Do not rely on spoken promises. Make sure everything is written into the contract.
- Do not sign any contract until all the blanks are filled in.
- Make sure to keep a copy of the contract.
- Don’t rush into signing anything.
Remember: You’ll have to live with what you sign! A contract is a legally binding document.
Last update: Tuesday, May 05, 2009