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Contracts · 3 min read

Before signing: five layers of contract review

Good review goes beyond drafting quality. It tests the commercial logic, allocation of risk, ability to perform, and route to exit.

A contract is sometimes treated as text to be corrected. Its real value is as a map of the relationship: who does what, when, to which standard, and what follows if circumstances change or performance fails.

1. The transaction before the language

First confirm that the document reflects the deal as the parties actually understand it. Language may be technically sound while failing to capture the operating model, consideration, or day-to-day responsibilities.

2. Clear obligations and standards

An obligation without timing, acceptance criteria, or ownership creates room for disagreement. Look for measurability, approval mechanics, and evidence of performance.

3. Allocation of risk

Review liability, indemnity, warranties, events outside control, and insurance where relevant. The question is not only who bears a risk, but whether that party can realistically manage it.

4. Change and exit

Relationships change. The agreement needs a route for changes in scope, termination, handover, data, and final payments without leaving operational gaps.

5. Dispute and enforcement

Notice, negotiation, jurisdiction, and enforcement should fit the parties, assets, and time sensitivity. A standard clause is not always the right clause.

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