Print this, or keep it open in another tab, and tick each point as you read the contract. If a point is missing from the document, that is an answer too: silence usually favours whoever wrote it.
Money
1. Is the total cost stated in one place?
Why: fees spread across five sections are easy to miss and add up. Ask: "What is the total I will pay over the full term, including every fee?"
2. Can the price change during the term?
Why: "we may adjust pricing with notice" turns a fixed deal into a floating one. Ask: "Is this price locked until the end date?"
3. What triggers late fees, and how big are they?
Why: daily compounding fees and "collection costs" can exceed the debt itself. Ask: "Is there a grace period, and is the late fee a fixed amount?"
4. Is there a deposit or prepayment, and when does it come back?
Why: a deposit with no return deadline is a gift. Ask: "On what date and under what conditions is this refunded?"
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Time
5. When does the contract start and end?
Why: a start date of "upon signature" with no end date is open-ended. Ask: "What is the exact end date?"
6. Does it renew automatically?
Why: auto-renewal with a short cancellation window is the most common consumer complaint about subscriptions and memberships, and several US states and the EU now require clear disclosure and easy cancellation. Ask: "How and by when do I cancel so it does not renew?"
7. Are the other side's deadlines as firm as yours?
Why: "time is of the essence" for your payments but "reasonable efforts" for their delivery is a one-way street. Ask: "What happens if you miss your dates?"
Exits
8. Can you leave, and what does it cost?
Why: early-termination fees that equal the whole remaining term mean you cannot really leave. Ask: "What is the exact amount to exit after 6 months?"
9. Can they leave more easily than you can?
Why: "Provider may terminate at any time for any reason; Customer may terminate only for uncured material breach" is a lopsided exit. Ask: "Can termination rights be made mutual?"
10. What happens to your data, deposit or work when it ends?
Why: if the contract is silent, you may lose access to your own files or lose the deposit by default. Ask: "What do I get back, and in what form, when this ends?"
Liability
11. Is there a cap on what you could owe?
Why: an uncapped indemnity turns a small agreement into unlimited risk. Ask: "Can my liability be capped at the fees paid?"
12. Are you personally guaranteeing a business debt?
Why: a "personal guarantee" or "guarantor" line makes your house and savings reachable. Ask: "Can the guarantee be removed or limited to a fixed amount?"
13. Who pays legal costs in a dispute?
Why: "customer pays all of company's legal fees" applies even if you win, in some drafts. Ask: "Can this be changed so the losing party pays?"
14. Does it exclude their liability for things they control?
Why: "not liable for any loss, however caused, including negligence" tries to remove responsibility for their own mistakes. Many consumer laws do not allow this, but it still sets the tone. Ask: "What are you actually responsible for?"
Rights
15. Are you giving up the right to go to court?
Why: mandatory arbitration and class-action waivers limit how you can complain, and where. Ask: "Where would a dispute be heard, and can I opt out of arbitration?" Many agreements allow an opt-out within 30 days of signing; check for it.
16. Are you handing over ownership of something?
Why: IP assignment, image rights, "license to use your content worldwide in perpetuity". Ask: "Can this be a limited license instead of an assignment?"
17. Are you restricted after it ends?
Why: non-competes, non-solicitation and confidentiality "without limit of time" follow you for years. Ask: "Can the restriction be shortened to 6–12 months and narrowed to what actually needs protecting?"
Changes
18. Can they change the terms without your agreement?
Why: "we may update these terms at any time by posting them" means the contract you signed is not the contract you will live under. Ask: "Will I be notified of changes and able to cancel without penalty if I disagree?"
19. Does the written contract override what you were told?
Why: an "entire agreement" clause cancels every verbal promise from the salesperson. Ask: "Please add what you just promised to the contract before I sign."
20. Is anything referenced that you have not seen?
Why: "subject to our policies", "Schedule B", "rules as amended from time to time": each one is a document that binds you sight unseen. Ask: "Can you attach every document this contract refers to?"
How to use the answers
A fair contract will pass most of these without discussion. Two or three concerns are normal and usually negotiable: send them in one short email listing the clause, the problem and the wording you want. If you find five or more, or the other party refuses to change anything, that tells you how the relationship will go after signing. For agreements involving large sums, your home, your job or a personal guarantee, have a lawyer read the final version. If cost is the problem, see free and low-cost contract review options, and for a slower, section-by-section read, our guide on how to read a contract. Unfamiliar words are in the plain English legal dictionary.
Sources
- Consumer Financial Protection Bureau: Consumer tools (loans, credit, debt collection)
- FTC Consumer Advice (subscriptions, auto-renewals, warranties, scams)
General information, not legal advice. Which clauses are enforceable depends on where you live and what kind of contract it is. When in doubt, ask a lawyer before you sign, not after.