I review a lot of contracts. Often, clients will send me a contract and say that the contract is standard and so shouldn’t have any issues. Here are a few key points to consider:
1. Variability in Terms and Conditions: Contracts often contain terms and conditions that are tailored to specific transactions, parties, or industries. What appears to be a “standard” clause can have significant variations that may not be immediately apparent but could have substantial legal and financial implications.
2. Evolving Legal Requirements: The legal landscape is continuously evolving, with new regulations and case law affecting contract enforceability and compliance. What was considered “standard” a few years ago may no longer be adequate or compliant with current legal standards.
3. Unique Business Circumstances: Each business has its own unique circumstances and risk profiles. Contracts should be carefully reviewed and customized to reflect your specific needs, objectives, and risk tolerance. A “one-size-fits-all” approach can lead to unforeseen liabilities and disputes.
4. Potential Pitfalls of Assumptions: Assuming a contract is “standard” can lead to oversight of critical details that could be detrimental in the event of a dispute or audit. It is essential to ensure that each contract is thoroughly reviewed to identify and address any potential risks or ambiguities.
We strongly recommend that any contract you intend to use be carefully reviewed by legal counsel to ensure it is properly tailored to your specific situation.