*Disclaimer- Although I am a legal professional, nothing contained herein is meant to be construed as legal advice, and I do not represent any individuals reading this article.
Even if you don’t realize it, contracts control a large portion of our daily lives. You may not even fully realize all the ways contracts govern our daily activities…don’t believe me? Here are just a few examples:
Do you own a house? You had a purchase agreement to buy it, you had title work to make sure it wasn’t encumbered, you likely have a mortgage whereby you agree to pay a financial institution a certain amount of money every month. Contract, contract, contract.
How about driving a car? If you bought or leased it, you likely had to agree to various terms, options, finance plans, etc. Contract!
Do you have any appliances? How about an iPhone? What about utility services? Yep, that’s right: these are all governed by contracts and likely contain warranties and provisions that limit your rights.
Now, out of all of the above, ask yourself, have you read any of these? It’s OK, be honest. I am a lawyer who negotiates contracts for a living, and I don’t read every single contract I receive. If I did, I would be reading all day! I certainly never read all the endless Apple language for my iPhone updates that some poor attorney painstakingly drafted and revised more times that he would like to admit. Heck, I reviewed all my house closing documents, but I certainly didn’t read all 20+ pages of mortgage documents in excruciating detail.
The reality is that most of us don’t really read these until there is a problem, right? But what if I told you that you could avoid some rather costly consequences by reviewing a few of the more significant ones. You would, right? Good! Keep reading…
1.) One of the most significant contracts that can have severe repercussions for failing to understand are home owner’s and auto owner’s insurance policies. Read every word. Know what you are covered for and what you are not. Know your policy limits, as well as any deductibles. Make sure the coverage you have makes sense for you. Talk to your agent and tell them what you need, so you are adequately covered. I once had an insurance policy that covered my condo for typhoons but not for damage caused by my neighbor’s frozen pipes flooding my unit. Luckily, I read it and had the policy adjusted to cover what I needed.
2.) Agreements regarding our children. Camp forms, daycare forms, field trip forms, athletic waivers…READ THEM! These are your children, know what you are agreeing to. Many of these seek to limit liability if your kids are injured in their care or have releases for their photo likeness and image to be used in marketing or promotion pieces. You may be fine with this, but you may not. If you have concerns, DON’T SIGN IT!
3.) Contracts that cover services that are being provided to you. Do they put you on the hook for injuries to contractors that may occur on your property? Do they require you to litigate in another state if there is a problem? Do they have huge penalties for canceling and require you to pay the other parties legal expenses? Negotiate the terms you want.
4.) Receipts/return policies/warranties. Yes, these are contracts, too; however, they are a bit disingenuous at times as you don’t always know what you have agreed to until after you purchase the product. Obviously for small items you may not care, but for the big ticket ones (or the type that can burn down your house), make sure you know what rights you have. Most retailers have their return policies posted on their websites and at the checkout, but many do not. As for warranties, they are often contained in the box, but frequently stores have copies of these available to review prior to purchase.
Make sure any agreements you sign represent what you have actually agreed to. Is the price correct? How about the start and completion dates? Who determines if the job/product is satisfactory? What recourse do you have if you are not satisfied?
You have the authority to negotiate the terms you want. If you don’t agree to something, cross it out and have them initial it. If you don’t think their terms are reasonable, change them and get it signed and in writing.
Most importantly, if you have concerns, or you don’t know what something means, it is more cost-effective to consult an attorney than the alternative. They can quote you a reasonable fee over the phone, and it is well-worth the money you spend to ensure you don’t get taken advantage of. I hope these suggestions will help you avoid some of the pitfalls of an ever-increasingly litigious world.
