A contract is a
legally-binding promise or agreement that is made between two or more people.
Read before you
the entire contract, even the fine print, before signing. After you sign, if
you do not hold up on your end of the bargain, the other party to the contract
can take action against you. Make sure you understand the entire contract. Many
contracts have clauses in them that specify how things are enforced. An
arbitration clause may be included that states how disputes of the contract are
handled. A clause can be written in the contract stating what legal fees may be
enforced due to breach of the contract. There can be a clause in the contract
that may waive your rights.
signing the contract you are agreeing to everything stated in that contract.
Terms to cancel
Make sure to
know the terms to cancel. Most the time if you cancel your contract you will
lose your deposit. But your loss can be more depending on the minimum
requirements of the contract. Remember if you sign a contract, you are
responsible for the terms of that contract.
Do not rely on
If the seller
makes a verbal promise, make sure the written contract states the promise. If
there is a dispute about a written contract or a verbal promise, the written
Never sign a
Never sign a
contract where something can be added later. Once you sign, it is difficult to
prove later that the paper was blank when signed. You would not sign a blank
check, so do not sign a blank contract. Cross out any clause in a contract that
does not apply or agree to you. If you sign with these clauses in the contract,
you are responsible for them.
any consumer transaction that involves the extension of credit or a cash
transaction of $25 or more that is initiated through face-to-face contact away
from the seller’s regular place of business can be canceled within three
business days. Door-to-door sellers, mail solicitors, and telephone solicitors
are required to give you two copies of a notice setting forth your rights. If
you wish to cancel one of these transactions the cancellation must be in
writing. The notice must be sent to the seller by midnight of the third
business day after the seller has given you the notice. It is a good idea to
send this notice certified mail.
with contracts now require you to provide an electronic signature. You may need
to provide an electronic signature if you make a purchase from a door-to-door seller
or when someone comes to install something such as a satellite or security
service you previously agreed to on the phone or on a website. By
electronically signing you are agreeing to the contract terms. Before providing
an electronic signature, make sure you agree to the contract. If reading the
contract is hard on the electronic pad, ask for a written copy of the contract.
agreements that are legally-binding on all parties to the agreement.
Make sure to
understand the contract. Contracts with tricky terms can be used by tricky
sellers. Seek legal or other advice if you do not understand any part of the
have provisions, often in fine print, that state representations other than
those contained in the contract itself are not recognized.
Be wary of
“guarantees”. Guarantees, unless specific, may be worthless.
Be sure the
contract specifically covers everything you want and is at a price you agree
Read every line
before you sign. This includes the fine print.
Take your time.
Make sure the contract is really what you want. It is ok to change your mind
before signing or agreeing to a contract.
Make sure to
get a copy of the contract once signed and keep it. You may need it later for
reference, or to launch a complaint if you have a problem.
not have to be in writing. An oral agreement can be a binding contract.