Contract Review Checklist for Small Business Owners in Kolkata
Most contract problems are not caused by dishonest partners. They are caused by a clause nobody read closely until something went wrong. Here is what to actually check before you sign, in the order it matters.
The clauses that cause the most trouble later
Payment terms. Check exactly when payment is due, what happens if it is late, and whether there is any interest or penalty attached to a delay, on either side. Vague language like "payment within a reasonable time" causes more disputes than almost anything else in a contract.
Termination. Read how either side can end the agreement, how much notice is required, and what happens to any work, deposit, or goods already exchanged if that happens. A contract that is easy to enter but unclear on how to exit is a real risk, not a technicality.
Liability and damages. Understand what you are actually on the hook for if something goes wrong, and whether that liability has any cap. This matters most in contracts involving goods, transport, or services where a mistake could cost far more than the value of the contract itself.
Scope of work. Vague descriptions of what is actually being delivered are one of the most common sources of disputes, especially in service contracts. If the scope can be read two different ways, assume it eventually will be.
Dispute resolution. Check where a dispute would actually be handled, whether it goes to arbitration or a specific court, and where that is located. This is easy to skip and expensive to ignore, since it decides how hard it will be to enforce your rights if things go wrong.
Before you sign, confirm these five things
- Every number in the contract, prices, quantities, dates, and deadlines, matches what you actually agreed to, not just what was discussed verbally.
- The party signing the contract is legally authorized to do so on behalf of their business.
- Any verbal promises made during negotiation are actually written into the contract. If it is not written down, it generally will not hold up later.
- You understand what happens if either side cannot deliver on time, including any force majeure or delay clause.
- You have a copy of the final, signed version for your own records, not just the draft you last reviewed.
Why a second set of eyes matters
Contracts are usually written to favor whoever drafted them. That is not always intentional, but it is almost always true. Having someone review a contract before you sign, especially for anything involving a significant payment, a long-term commitment, or property, is one of the cheapest forms of protection a business can buy compared to the cost of a dispute later.
Getting a contract reviewed
If you have a contract you are about to sign and want a second opinion before you do, talk to our legal team, or read more about how we support businesses day to day on our legal solutions page.