{"id":1758,"date":"2022-01-16T21:40:44","date_gmt":"2022-01-16T21:40:44","guid":{"rendered":"https:\/\/uk.legalvision.com.au\/?p=1758"},"modified":"2023-04-18T01:01:12","modified_gmt":"2023-04-18T00:01:12","slug":"signing-a-business-contract","status":"publish","type":"post","link":"https:\/\/legalvision.co.uk\/commercial-contracts\/signing-a-business-contract\/","title":{"rendered":"5 Key Steps to Take Before Signing a Business Contract in the UK"},"content":{"rendered":"\n<p><span style=\"font-weight: 400\">Signing a new business contract is often an exciting time for a business. Y<\/span>ou might be<span style=\"font-weight: 400\"> bringing on a new client or have found a new provider of goods or services. Notably, there are initial steps you should take to clarify whether entering a contract is a <\/span><a href=\"https:\/\/legalvision.co.uk\/commercial-contracts\/steps-to-take-before-signing-a-contract\/\"><span style=\"font-weight: 400\">good option for your business<\/span><\/a><span style=\"font-weight: 400\">. Below, we unpack five key steps to take before signing a business contract.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">1. Research the Other Side<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">Before entering into a business relationship with another party, <\/span>researching the other side is essential<span style=\"font-weight: 400\">. Y<\/span>ou want to be <span style=\"font-weight: 400\">comfortable with t<\/span>he other party<span style=\"font-weight: 400\"> and their legitimacy as a business. <\/span>After all, if you are not confident that they can fulfil their contractual obligations, there is little point in agreeing to a contract with them.<\/p>\n\n\n\n<p><span style=\"font-weight: 400\">Before signing a <\/span><a href=\"https:\/\/legalvision.co.uk\/commercial-contracts\/online-business-contracts\/\"><span style=\"font-weight: 400\">business contract<\/span><\/a><span style=\"font-weight: 400\">, you should ask the following questions about the other party:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span style=\"font-weight: 400\">Do they have a website and online presence and do they look professional?<\/span><\/li>\n\n\n\n<li>Do they have <span style=\"font-weight: 400\">reviews and are there any concerning comments?<\/span><\/li>\n\n\n\n<li>Are they correctly registered with <a href=\"https:\/\/www.gov.uk\/government\/organisations\/companies-house\"><span style=\"font-weight: 400\">Companies House<\/span><\/a><span style=\"font-weight: 400\"> and are their financials in order?<\/span><\/li>\n\n\n\n<li>Who are their<span style=\"font-weight: 400\"> key stakeholders?<\/span><\/li>\n\n\n\n<li>Should you undertake a <span style=\"font-weight: 400\">credit or insolvency check?&nbsp;<\/span>(This is particularly relevant if you are the provider of goods or services under the contract).<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">2. Check the Commercial Details of the Contract<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">Most business contracts will include a table of commercial details on the first or last page of, or attached to, the contract. Generally, a business will use a standard contract and simply update its details according to the other contracting party. As such, check to ensure the contract details match your negotiated terms. <\/span><\/p>\n\n\n\n<p>K<span style=\"font-weight: 400\">ey commercial terms for you to double-check include the:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span style=\"font-weight: 400\">contact details;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">description of the goods or services to be provided. Notably, many disputes arise where thorough descriptions of goods or services are not agreed upon in the contract;<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">price of the contract (including any additional expenses or surcharges);<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">payment terms; and<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">length of the contract.<\/span><\/li>\n<\/ul>\n\n\n\n\n<a href=\"#content-next\"\n   class=\"block p-4 mt-10 text-xl font-bold text-center text-white no-underline bg-gray-800 rounded-t-xl\">\n    Continue reading this article below the form\n    <i class=\"text-xl fa-regular fa-arrow-down\"><\/i>\n<\/a>\n<div class=\"px-6 pt-10 pb-12 mb-10 text-center bg-gray-100 rounded-b-xl sm:px-12 test\">\n    <div class=\"mb-8 text-2xl font-bold text-orange\">\n        Need legal advice?\n        <br>\n        <span class=\"text-lg not-prose\">\n                            Call <a href=\"tel:+448081968584\" 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Check Each Party\u2019s Contractual Obligations<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">Additionally, review the contract for your obligations and those of the other party before you sign it. This ensures that the other party has not included any extra commitments you have not agreed t<\/span>o <span style=\"font-weight: 400\">i<\/span>n the <span style=\"font-weight: 400\">negotiati<\/span>on. Likewise, it prevents the other party from removing <span style=\"font-weight: 400\">some of their own commitments.&nbsp;<\/span><\/p>\n\n\n\n<div class=\"box box--icon box--info\">\n<p><span style=\"font-weight: 400\">Where you are a service provider, ensure that you are only required to provide the set of services that you have agreed to in the contract, and you are not required to provide any related or secondary services. If the customer requests additional services, you should add provisions in the contract that allow you to charge an additional fee.&nbsp;<\/span><\/p>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">4. Understand How Termination Works<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">When entering a contract, it is vital to clarify the circumstances in which you (or the other side) can end the contract. <\/span>Indeed, t<span style=\"font-weight: 400\">here are many reasons you may wish to end a contract<\/span>. For example, <span style=\"font-weight: 400\">t<\/span>he business relationship might break down, or one side <span style=\"font-weight: 400\">lacks funds to pay for goods or services<\/span>. One party might also wish to change its business direction.<span style=\"font-weight: 400\">\u00a0<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">So, before signing the contract, you should ask the following questions:<\/span><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><span style=\"font-weight: 400\">Can you <\/span><a href=\"https:\/\/legalvision.co.uk\/commercial-contracts\/how-do-i-terminate-contract-for-breach\/\"><span style=\"font-weight: 400\">terminate<\/span> the contract<\/a> <span style=\"font-weight: 400\">without consequence if the other party breaches the contract?<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">Can you, or the other party, terminate the contract for any reason and at any time? If yes, are you okay with this?<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">If the contract is terminated mid-term, will you need to pay an <\/span><a href=\"https:\/\/legalvision.co.uk\/commercial-contracts\/cancellation-fee\/\"><span style=\"font-weight: 400\">exit or break fee<\/span><\/a><span style=\"font-weight: 400\">?<\/span><\/li>\n\n\n\n<li><span style=\"font-weight: 400\">Will the contract automatically renew at the end of the term if you do not provide notice to terminate the contract?<\/span><\/li>\n<\/ul>\n\n\n\n<div class=\"box box--icon box--info\">\n<p><span style=\"font-weight: 400\">If you enter into a contract that automatically renews, you should diarise any notice periods for terminating the contract so that you do not miss them.<\/span><\/p>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">5. Seek Legal Advice<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">It is always important to have a solicitor review any business contract you intend to sign.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">Solicitors can <\/span><a href=\"https:\/\/legalvision.co.uk\/commercial-contracts\/questions-contracts-lawyer\/\"><span style=\"font-weight: 400\">identify any red flags<\/span><\/a><span style=\"font-weight: 400\"> or unfair terms hidden in the contract that may pose a risk to your business. Likewise, a legal professional can raise any standard terms missing from the contract and mak<\/span>e<span style=\"font-weight: 400\"> necessary amendments.&nbsp;<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Key Takeaways<\/span><\/h2>\n\n\n\n<p><span style=\"font-weight: 400\">Before entering a new business contract, it is prudent to research the other side and review the contract\u2019s terms and conditions. Ensuring the contract reflects the deal you have negotiated and is well balanced and protective of your interests will minimise future disputes.<\/span><\/p>\n\n\n\n<p><span style=\"font-weight: 400\">If you need help drafting or reviewing business contracts, our experienced <\/span><a href=\"https:\/\/legalvision.co.uk\/contract-lawyers-lp\/\"><span style=\"font-weight: 400\">contract lawyers<\/span><\/a><span style=\"font-weight: 400\"> can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to solicitors to answer your questions and draft and review your documents. Call us today on <a href=\"tel:+448081968584\" class=\"AVANSERnumber dynamic-number\">0808 196 8584<\/a> or visit our <\/span><a href=\"https:\/\/legalvision.co.uk\/membership\"><span style=\"font-weight: 400\">membership page<\/span><\/a><span style=\"font-weight: 400\">.<\/span><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span style=\"font-weight: 400\">Frequently Asked Questions<\/span><\/h2>\n\n\n\n<div class=\"schema-faq wp-block-yoast-faq-block\"><div class=\"schema-faq-section\" id=\"faq-question-1657675611325\"><strong class=\"schema-faq-question\"><strong>Does a business contract have to be in writing?<\/strong><\/strong> <p class=\"schema-faq-answer\">Technically no, verbal contracts are enforceable under Welsh and English law. However, to protect your interests as a business owner, it is best to enter into written contracts to guarantee clarity and prevent disputes.<\/p> <\/div> <div class=\"schema-faq-section\" id=\"faq-question-1657675628239\"><strong class=\"schema-faq-question\"><strong>Can business contracts be changed or updated?<\/strong><\/strong> <p class=\"schema-faq-answer\">Yes, you can make amendments to business contracts, but only with the consent of all parties to the original contract.<\/p> <\/div> <\/div>\n<div class=\"not-prose m-feedback-prompt\">\n    <!-- Thumbs up\/down bar -->\n    <div class=\"m-feedback-prompt__main\">\n        <div class=\"m-feedback-prompt__title\">Was this article helpful?<\/div>\n        <div>\n            <!--span class=\"m-feedback-prompt__button--text\">Thanks!<\/span-->\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--yes\"\n                    data-analytics-link=\"feedback-prompt:yes\" aria-label=\"Agree\">\n                <i class=\"fa-regular fa-thumbs-up fa-3x\"><\/i>\n            <\/button>\n            <button type=\"button\" class=\"m-feedback-prompt__button m-feedback-prompt__button--no\"\n                    data-analytics-link=\"feedback-prompt:no\" aria-label=\"Disagree\">\n                <i class=\"fa-regular fa-thumbs-down fa-3x\"><\/i>\n            <\/button>\n        <\/div>\n    <\/div>\n\n    <!-- Feedback form -->\n    <div class=\"m-feedback-prompt__form\">\n        <div class=\"m-feedback-prompt__form--thanks \">\n            <div>Thanks!<\/div>\n            <p>\n                We appreciate your feedback \u2013 your submission has been successfully received.            <\/p>\n        <\/div>\n        <form id=\"contact-form\" class=\"m-feedback-prompt__form--form\" action=\"\" method=\"post\">\n            <input type=\"hidden\" id=\"authenticity_token\" name=\"authenticity_token\" value=\"9eb4f72322\" \/><input type=\"hidden\" name=\"_wp_http_referer\" value=\"\/api\/wp\/v2\/posts\/1758\" \/>            <input value=\"https:\/\/legalvision.co.uk\/commercial-contracts\/signing-a-business-contract\/\" type=\"hidden\" name=\"currenturl\"\n                   id=\"currenturl\">\n            <input value=\"5 Key Steps to Take Before Signing a Business Contract in the UK\" type=\"hidden\" name=\"currenttitle\"\n                   id=\"currenttitle\">\n            <label>\n                <!-- display on thumbs-up -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--yes\">\n                    Can you tell us <span class=\"font-semibold\">why<\/span> you found it helpful?\n                <\/span>\n\n                <!-- display on thumbs-down -->\n                <span class=\"m-feedback-prompt__feedback m-feedback-prompt__feedback--no text-lg\">\n                    How can we better improve this article?\n                <\/span>\n                <textarea name=\"feedbackmessage\" id=\"feedbackmessage\" required><\/textarea>\n            <\/label>\n\n            <div class=\"m-feedback-prompt__form--error\" id=\"form-submit-error\"><\/div>\n            <button id=\"submit-contact-form-button\" type=\"submit\" name=\"commit\" class=\"m-feedback-prompt__form--submit\"\n                    data-analytics-link=\"feedback-prompt:submit\">\n                Submit            <\/button>\n        <\/form>\n    <\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Signing a new business contract is often an exciting time for a business. You might be bringing on a new client or have found a new provider of goods or services. Notably, there are initial steps you should take to clarify whether entering a contract is a good option for your business. Below, we unpack<a href=\"https:\/\/legalvision.co.uk\/commercial-contracts\/signing-a-business-contract\/\">Continue reading <span class=\"sr-only\">&#8220;5 Key Steps to Take Before Signing a Business Contract in the UK&#8221;<\/span><\/a><\/p>\n","protected":false},"author":13071,"featured_media":678,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_relevanssi_hide_post":"","_relevanssi_hide_content":"","_relevanssi_pin_for_all":"","_relevanssi_pin_keywords":"","_relevanssi_unpin_keywords":"","_relevanssi_related_keywords":"","_relevanssi_related_include_ids":"","_relevanssi_related_exclude_ids":"","_relevanssi_related_no_append":"","_relevanssi_related_not_related":"","_relevanssi_related_posts":"1776,1843,999,1362,1386,1794","_relevanssi_noindex_reason":"","editor_notices":[],"footnotes":""},"categories":[37],"tags":[20,21,359,360,361,362],"class_list":["post-1758","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-commercial-contracts","tag-small-business","tag-medium-business","tag-business-contract","tag-commercial-contract","tag-signing-contract","tag-lawyer-questions"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.1.1 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>5 Key Steps to Take Before Signing a Business Contract | LegalVision UK<\/title>\n<meta name=\"description\" content=\"There are initial steps you should take to clarify whether signing a contract is a good option for your business. 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We explore five key steps.","breadcrumb":{"@id":"https:\/\/legalvision.co.uk\/commercial-contracts\/signing-a-business-contract\/#breadcrumb"},"mainEntity":[{"@id":"https:\/\/legalvision.co.uk\/commercial-contracts\/signing-a-business-contract\/#faq-question-1657675611325"},{"@id":"https:\/\/legalvision.co.uk\/commercial-contracts\/signing-a-business-contract\/#faq-question-1657675628239"}],"inLanguage":"en-GB","potentialAction":[{"@type":"ReadAction","target":["https:\/\/legalvision.co.uk\/commercial-contracts\/signing-a-business-contract\/"]}]},{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/legalvision.co.uk\/commercial-contracts\/signing-a-business-contract\/#primaryimage","url":"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2021\/11\/30230746\/brand-design-00230.jpg","contentUrl":"https:\/\/img.legalvision.com.au\/wp-content\/uploads\/sites\/4\/2021\/11\/30230746\/brand-design-00230.jpg","width":1600,"height":1068,"caption":"Should I Agree to Give My Customer an Unlimited Indemnity? | LegalVision UK"},{"@type":"BreadcrumbList","@id":"https:\/\/legalvision.co.uk\/commercial-contracts\/signing-a-business-contract\/#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/legalvision.co.uk\/"},{"@type":"ListItem","position":2,"name":"Commercial Contract Articles","item":"https:\/\/legalvision.co.uk\/category\/commercial-contracts\/"},{"@type":"ListItem","position":3,"name":"5 Key Steps to Take Before Signing a Business Contract in the UK"}]},{"@type":"WebSite","@id":"https:\/\/legalvision.co.uk\/#website","url":"https:\/\/legalvision.co.uk\/","name":"LegalVision UK","description":"LegalVision is a commercial law firm in the UK with a commitment to innovation","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/legalvision.co.uk\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-GB"},{"@type":"Person","@id":"https:\/\/legalvision.co.uk\/#\/schema\/person\/85feb608df22d2003a15601d69970802","name":"Lauren McKee","image":{"@type":"ImageObject","inLanguage":"en-GB","@id":"https:\/\/legalvision.co.uk\/#\/schema\/person\/image\/","url":"https:\/\/legalvision.com.au\/wp-content\/uploads\/2024\/12\/Lauren-McKee-e1734560376313-96x96.jpg","contentUrl":"https:\/\/legalvision.com.au\/wp-content\/uploads\/2024\/12\/Lauren-McKee-e1734560376313-96x96.jpg","caption":"Lauren McKee"},"description":"Lauren is a Practice Leader in LegalVision\u2019s Corporate and Commercial team in the United Kingdom and Australia. She works across a broad range of commercial matters. Lauren works with SMEs, startups and enterprise clients to understand their business and assist them with their contract law needs.","sameAs":["https:\/\/www.linkedin.com\/in\/lauren-mckee\/"],"url":"https:\/\/legalvision.co.uk\/author\/lauren-mckee\/"},{"@type":"Question","@id":"https:\/\/legalvision.co.uk\/commercial-contracts\/signing-a-business-contract\/#faq-question-1657675611325","name":"Does a business contract have to be in writing?","acceptedAnswer":{"@type":"Answer","text":"Technically no, verbal contracts are enforceable under Welsh and English law. However, to protect your interests as a business owner, it is best to enter into written contracts to guarantee clarity and prevent disputes.","inLanguage":"en-GB"},"inLanguage":"en-GB"},{"@type":"Question","@id":"https:\/\/legalvision.co.uk\/commercial-contracts\/signing-a-business-contract\/#faq-question-1657675628239","name":"Can business contracts be changed or updated?","acceptedAnswer":{"@type":"Answer","text":"Yes, you can make amendments to business contracts, but only with the consent of all parties to the original contract.","inLanguage":"en-GB"},"inLanguage":"en-GB"}]}},"_links":{"self":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/1758","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/users\/13071"}],"replies":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/comments?post=1758"}],"version-history":[{"count":11,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/1758\/revisions"}],"predecessor-version":[{"id":180424,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/posts\/1758\/revisions\/180424"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/media\/678"}],"wp:attachment":[{"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/media?parent=1758"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/categories?post=1758"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/legalvision.co.uk\/api\/wp\/v2\/tags?post=1758"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}