#12
Contracts & DealsMedium Risk
The contract was drafted by the other side, and they are pressuring you to sign quickly
One-Sided Drafting
Why It's Dangerous
A contract drafted by the other party naturally tends to protect their interests. If they push you to sign quickly without giving you enough time to review, be especially wary. Every clause in a contract can affect your rights.
Typical Scenario
A general manager at the counterparty company sent over a contract and pressured the client to sign it that same day. The client signed without careful review, only to later discover clauses on arbitration and liquidated damages that were extremely unfavorable.
* This scenario is illustrative, based on common patterns observed in legal disputes.
What To Do
1
Any contract should be reviewed by your own lawyer first2
Don't let the other side's urgency pressure you — a reasonable signing process gives you adequate time to review3
Pay particular attention to liquidated-damages clauses, dispute-resolution clauses, and guarantee clauses4
You have the right to request changes to a contract drafted by the other partyHave you experienced this?