Never Ignore The Small Print
With most business owners, employees and consumers all failing to properly read contracts before signing them, the legal experts at Yorkshire based LCF Law have revealed the most important aspects to look for before agreeing to terms and conditions.
Commercial and digital partner James Sarjantson from LCF Law
This follows recent research that reveals how the majority of people sign on the dotted line without considering what they are agreeing to. Research by the University of Law found 68% either don’t read or don’t understand contracts they sign for things like subscriptions and utilities and 55% of the people questioned admitted they read their contracts to an extent but don’t always understand what they’re agreeing to.
In another survey by Adobe, 62% of small business owners admitted to signing contracts without knowing the details. In addition, 64% of small business leaders said they had avoided signing a contract because they weren’t confident, they understood its terms.
As a result, LCF Law has launched a new service, known as LCF Counsel, that offers SMEs unlimited, within-scope, commercial legal advice for a fixed monthly cost, and the most common requirement from businesses is assistance with contracts.
James Sarjantson, head of commercial and digital at LCF Law, explained: “LCF Counsel gives growing businesses, typically with up to £4m turnover, direct access to expert legal advice whenever they need it for a fixed monthly fee, because running a business means making dozens of decisions every day and many of these will have legal implications.
“Contracts are nearly always long and often complicated documents, but if businesses simply sign them without fully understanding what they’re agreeing to, it can have major consequences. Although most honourable businesses won’t hide deliberately punishing terms in the small print, problems often arise when it comes to things like price increases, financial penalties, subscription lengths and termination clauses.
“We review commercial contracts every day between our clients and their suppliers, which helps them manage risks, avoid pitfalls and hold the other party to its promises. In addition, it can be just as much of a minefield with a company’s own terms and conditions, which are often a major legal risk, so we also guide businesses through the contracts they have with their customers. This means ensuring that contract terms protect the business, are enforceable and work in the real world.”
“Other common areas that LCF Counsel advises on include protecting intellectual property, data protection issues, consumer law, e-commerce regulations and privacy requirements.”
LCF Law’s expert team have compiled a list of key points to check when it comes to reading and providing terms and conditions:-
1. Basic details
Correct names and contact info of all parties.
Accurate start, end and renewal dates.
Clear description of the purpose or scope of the contract.
2. Key terms
Defined deliverables, milestones, or responsibilities.
Payment terms detailing amounts, due dates, method and penalties.
Termination clauses including notice period, reasons and any fees.
Confidentiality or non-disclosure terms.
Intellectual property ownership and who owns what.
Liability and indemnity clauses explaining who bears the risk if things go wrong.
3. Obligations and rights
Both parties’ duties clearly outlined.
Performance standards or deadlines are realistic and measurable.
Any warranties or guarantees are specified.
4. Legal and compliance
Governing law and dispute resolution methods such as arbitration or court.
Compliance with applicable regulations or industry standards.
Any non-compete or exclusivity clauses reviewed for fairness.
5. Practical considerations
Clauses for changes or amendments to the contract.
Renewal or extension process clearly described.
Exit strategy or obligations upon contract end.
Signatures of authorised representatives.
6. Final checks
No blanks, inconsistencies, or undefined terms.
All referenced documents or attachments are included.
LCF Law is an award-winning full-service law firm, which operates regionally, nationally and internationally, with over 145 people across offices in Leeds, Bradford, Harrogate and Ilkley.
