23/03/2011

Tips for Signing Contract Papers

Whenever and wherever we are going for any services, lice mobile/telephone connection, any type of Insurances purchase of  home/vehicle, loan from any source etc. the owner or the agent of service provider ask us to sign various type of forms and documents. We the educated and young people who making hard money by sweating lots, are also signing these documents very carelessly and without reading the contents of the document. We are forgetting that the signatures which we are putting on the documents are not just a autograph but we also consenting a legally binding agreement. Therefore one should be very careful before and while signing an agreement.

Contract/agreement are mutually binding documents and once sign, it cannot be alter without the consent of all the involve parties. It contains all the terms and condition which is binding for all the members who have signed it.

What is Contract?
Contract is an agreement which is enforceable by law. Contract creates legally binding relationship and obligation i.e. right and duties between contracting parties where agreement is defines as a promise or set of promise forming consideration for each other. All contracts are agreement but all agreement are not contract.

Before making any contract following points should be ensured.
1.     There should be two or more parties.
2.     Offer and acceptance must be there.
3.     Obligation should be commercial.
4.     The contracting parties should not be minor or person of unsound mind or disqualified from contracting by law.
5.     Lawful object and consideration.
6.     Agreement should not be declared void by any court.

While signing any contract following points should be ensured.
1.     Ensure none of the column left blank. If any place which is blank fill with dash (-) mark.
2.     Don't hesitate to clear your doubt if any arises while signing the documents, if needed take help of expert persons.
3.     Don't come under influence for signing for any documents. This may be a tactic of the parties with mala-fide intension to get the wrong documents signed.
4.     If anybody promised you verbally must be in writing. Don’t believe on verbal promises, these are made to break and influence the people in decision making.
5.     Keep the copy of all the documents and forms you have signed and submitted to the service providers.
6.     Please check the terms and condition which are writing in very tiny letter. these tiny mark terms are hidden conditions.
These points are not exhaustive, it is just a guiding so if you are making any agreement or contract of big financial value, must take the help of experience person. 

It is to know that contract/Agreements are designed to protect both the parties. Just make sure you fully understand all details before signing a contract or agreement.