Contracts form an integral part in both our legal system and our lives – chances are, you’ve encountered and/or signed a contract in one way or another very recently. While that idea may seem alarming, it shouldn’t be that way. Contracts are formed in order to protect the rights of both parties in transactions and agreements of all scopes and sizes.
Whether you are signing up for a gym membership, purchasing a car or taking out a loan, contracts help to outline the responsibilities of both parties as part of an agreement or transaction.
Legal advice is not usually needed for something as simple as signing up for a new phone plan or agreeing to the terms & conditions of a website program. However, there are times when using the services of a lawyer can be very important.
When agreeing to complex contracts involving significant amounts of money, your lawyer will be able to explain to you what your rights and responsibilities are as part of the contract. Many individuals who are unfamiliar with ‘legalese’ can have a difficult time understanding a contract – however, lack of understanding may not count for much in the event that you break a contract.
There are a few critical things to consider before putting pen to paper on any contract:
- Shop around: If the product or service you intend to purchase involves signing a contract (car leases, phone plans, etc) we highly recommend checking what other competitors are offering. You may be able to find a similar product or service from a competitor via a contract with more suitable terms for you. In some cases, this could mean paying lower interest rates or more forgiving arrangements if you are unable to make a payment.
- Understand the other party: It never hurts to do your research, especially when purchasing a product or service from a company or person you haven’t done business with before. A quick web search of the name of the company or person you are dealing with provides a quick reference point for their reputation, and helps ensure that the other party in your contract is one you feel comfortable doing business with.
- If it seems to good to be true, it probably is: It’s an old saying, but it holds up. Even reputable businesses may sometimes appear to be offering you a great deal that you can’t miss out on. However, upon reading the fine print closely you may find that the deal doesn’t seem so great after all. Always read the fine print of any contract closely, and make sure you only sign contracts that you fully understand and agree to.
- Know the exit strategy: In most contracts, there are usually clauses that can be invoked if either party wishes to cancel the agreement. However, these exit clauses often come with financial penalties, such as additional fees for cancelling the contract at an earlier stage. In some cases these exit clauses may only be used within a certain timeframe. Make sure you know how and when you can use any exit clause contained within a contract so you are fully aware of your options.
- Get legal advice: Sometimes contracts are broken, knowingly or unknowingly. In either event, making sure you have the services of a lawyer can help you to both understand the situation and navigate the best way out of it. In larger transactions, like buying or selling a home, using the services of a lawyer should be a priority from the very beginning.
With over 25 years of serving the Saanichton and Greater Victoria area, we understand the unique challenges and opportunities that residents of this beautiful corner of Vancouver Island encounter every day. You can trust in the expertise and local knowledge of our team as we help you with whatever legal issues you need resolving.
The lawyers at Saanichton Law Group are here to help you create a representation agreement that works for you. We are also able to assist you in all of your corporate law needs, as well as employment agreements, power of attorney, real estate law, mortgages and estate law. Call us at (250) 544-0727 or email us at info@saanichtonlaw.com for more details on how we can assist you.
