What Questions Should I Ask Before Signing a Business Contract?

Entering into a business contract can feel exciting. It often marks growth, opportunity, and new partnerships. But before you put pen to paper, it’s essential to slow down and ask the right questions. Contracts are legally binding agreements, and overlooking the fine print could cost your business money, time, and even relationships.

If you’re a business owner in Indiana, here are the key questions you should consider before signing your next contract.

1. Do I Clearly Understand the Terms?

It sounds simple, but many contracts are filled with legal jargon that can be confusing. Ask yourself:

• What exactly am I agreeing to provide or receive?

• Are deadlines, deliverables, and responsibilities clearly defined?

• Does the contract leave room for interpretation that could be used against me later?

  
  

Clarity now avoids disputes later. If anything seems vague, ask for revisions.

2. What Are My Risks and Liabilities?

A contract doesn’t just outline benefits. It also assigns risk. You’ll want to know:

• Am I personally liable, or is my business entity protected?

• What happens if I can’t perform due to circumstances outside my control?

• Could hidden indemnity or penalty clauses put me in financial jeopardy?

  
  

Understanding liability ensures you don’t unintentionally expose yourself or your business to unnecessary risk.

3. How Can This Contract End?

Not all business relationships last forever. Before signing, ask:

• Under what circumstances can either party terminate?

• Is there a required notice period?

• Are there financial penalties for ending the agreement early?

  
  

Termination clauses matter just as much as the promises made in the beginning.

4. What Dispute Resolution Options Exist?

Even well-written contracts can lead to disagreements. Knowing how disputes will be handled is critical. Consider:

• Will conflicts go to court, arbitration, or mediation?

• Where will disputes be resolved, locally in Indiana or elsewhere?

• Who pays the legal costs?

  
  

These details can dramatically affect the time, stress, and expense of resolving conflicts.

5. Is Everything in Writing?

Verbal promises may sound reassuring, but if they’re not in the contract, they’re not enforceable. Always confirm that every agreement, side conversation, or assurance is written into the document.

6. Have I Had a Lawyer Review This?

Even experienced business owners can miss important details. An attorney can spot risks, suggest protective language, and ensure the contract complies with Indiana law.

Final Thoughts

Asking the right questions before signing a business contract protects your interests and gives you confidence moving forward. Don’t let unclear terms, hidden risks, or one-sided clauses put your business in jeopardy.

At Brinkley Law, we help Indiana businesses review, negotiate, and draft contracts that safeguard their future. Before you sign, schedule a consultation. Let us make sure your contract works for you, not against you.

📞 Call Brinkley Law today at 317-766-1379 or book online to get started.