Mistakes to Avoid When Signing Contracts

Signing a contract might seem straightforward, but many people make avoidable mistakes that lead to disputes, unfair terms, or liability. In this guide, we'll explore common errors people make—and what to do instead to protect your interests.

1. Signing Without Reading the Entire Document

One of the most frequent mistakes is glossing over fine print or assuming boilerplate is safe. Every clause matters. Hidden terms, references to later sections, and disclaimers often lurk at the end.

2. Ignoring Defined Terms & Glossary Sections

Failing to check the definitions section can lead you to misinterpret key words (like “Services,” “Confidential Information,” “Term”). If terms are capitalized but not defined clearly, that’s a red flag.

3. Accepting Vague or Open-Ended Language

Terms like “reasonable efforts,” “best endeavors,” “as needed,” or “in good faith” leave too much room for dispute. If things are vague, ask for clarification or more precise terms.

4. Missing the Termination / Exit Clauses

Not checking how a contract can be ended is risky. Some contracts lock you in with minimal exit options. Always review termination rights, notice windows, and penalties.

5. Overlooking Automatic Renewals

Automatic renewal clauses can bind you longer than you expect. If you don’t cancel in time, you may be stuck under the same terms or worse.

6. Not Limiting Liability or Indemnity

If a contract forces you to accept unlimited liability or broad indemnification obligations, you could be on the hook for unexpected losses. Always seek caps or carve-outs.

7. Forgetting to Negotiate or Ask Questions

Many people sign because the contract is labeled “standard” or “boilerplate.” Just because it’s standard doesn’t mean it’s fair. Ask questions, request changes, or decline terms you don’t accept.

8. Failing to Secure Written Amendments

Verbal promises or side agreements don’t always hold up. Any changes or exceptions should be in writing and signed to be enforceable.

9. Not Considering Jurisdiction & Governing Law

A contract might specify a state’s law or a particular court for disputes. If it’s inconvenient or unfamiliar to you, that’s something worth negotiating.

10. Skipping Professional or Peer Review

Don’t go it alone—especially for contracts with high stakes. Having a lawyer, a trusted friend, or a plain‑language service like mine review can save you from major issues.

Conclusion

Each of these mistakes may seem small, but in a legal document they can have big consequences. Take your time, read thoroughly, ask for clarity, and never assume any term is fair. If you’d like me to review a contract you’re about to sign and flag risks for you in plain English, upload it and I’ll walk you through it.

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