As a business attorney, I’ve seen too many entrepreneurs sign contracts without fully understanding the terms—only to face expensive disputes later. Just last month, a client came to me after being locked into an auto-renewing vendor agreement with a 60-day cancellation window buried in the fine print. By the time they realized it, they were stuck paying for another year of services they didn’t need. Learn how to identify contract red flags, and protect your business from costly mistakes.
Here’s what I teach my clients to look for before signing any agreement:
1. The “We Can Change Terms Whenever We Want” Clause
Many contracts include language like:
“Company reserves the right to modify pricing or terms at any time with 30 days’ notice.”
Why it’s dangerous: This essentially lets the other party rewrite the rules mid-game. I always recommend striking this or adding “with mutual written agreement.”
2. The “You’re Responsible for Everything” Liability Clause
I recently reviewed a software contract stating:
“Client assumes all liability for any damages arising from use of the product.”
My fix: We negotiated it down to “liability limited to fees paid in the last 12 months.”
3. The “Forever and Everywhere” Non-Compete
A restaurant client was asked to sign a 5-year non-compete covering the entire state. That’s unreasonable in most jurisdictions. Courts often throw these out, but not before you’ve spent thousands in legal fees.
What I Do For Clients
When reviewing contracts, I:
- Highlight risky terms in red
- Draft alternative language
- Explain worst-case scenarios
Real Example: Just last week, we saved a tech startup from signing a $250k penalty clause for early termination. Three hours of legal review paid for itself 100x over.
Don’t let a bad contract undermine your business. Contact Visa Immigration Pro for a contract review.
