Before Signing a Business Contract: What Terms Should You Check?
Published: 2 September 2026 · Last updated: 2 October 2026
A useful contract clearly explains each party’s obligations, how payments will be made, and how problems will be resolved. Start your review with the way the business actually operates, then check whether the document fully supports that process.
Check the parties and scope of work
Verify the parties’ names, the signatories’ authority, and any relevant powers of attorney. Clearly identify the goods, services, or rights agreed upon, together with supporting documents such as product specifications, distribution territories, work standards, and delivery schedules.
Make payment and acceptance terms measurable
Specify the price, taxes, additional expenses, payment instalments, and documents required for payment. If payment depends on acceptance, identify the reviewer, acceptance criteria, response period, and procedure for correcting the work. Include a process for approving work beyond the original scope.
Review terms specific to the type of contract
For a distribution agreement, review the parties’ status, territory, sales targets, product returns, and trade restrictions. For an employment contract, check duties, remuneration, working hours, and termination terms against applicable labour law.
For a lease, review the landlord’s rights, permitted use, term, deposit, repairs, and return of the property. Business agreements may also need provisions on confidentiality, personal data, and rights in work products, depending on the work involved. These points provide an initial review checklist.
Plan how problems will be resolved
Define events of breach, notices requiring a breach to be remedied, termination rights, consequences for outstanding payments and property, and procedures for negotiation or dispute resolution. A lawyer should review penalty and limitation of liability clauses for both suitability and enforceability.
Keep the complete agreed version
Keep the signed contract, attachments, and confirmations of amendments together. For electronic signatures, retain evidence of the signatories’ identities, their intention to sign, and the integrity of the document. Also check the legal requirements applicable to the transaction [1].
Consult the firm
The firm provides contract drafting, review, advice, negotiation, and litigation services. Arrange an appointment and an initial assessment via LINE: amatyakul, WhatsApp, or sarun@amatyakul.com.
See our business contract drafting and review services.
This article provides general information to help you prepare. Each matter should be assessed with a lawyer, taking into account its facts, documents, deadlines, and applicable law.