Before you enter into an execution of any legal instrument, there are multiple things you should consider.
1. Effective Date
Common misunderstanding that Effective Date and Execution Date should or is the same calendar day. However, in some contract the execution maybe different from the day which the terms and conditions come into effect.
2. Authorization
You should always check if the opposite party is an authorized person(s) to enter into an agreement with you, either from corporate affidavit or power of attorney.
3. Payment
Always double check payment amount if it match with your original agreement. In the event that payment is to be made in installments, you should always calculate, including interest (if any).
4. Penalty or Interest
You should check if the contract mention any interest or penalty. The interest should complies with the related laws and regulations.
5. Diligence
You should always ensure the all obligations under the contract can be legally executed and match with the objectives of the transaction.
6. Governing Law
Always check that law will be applicable and govern the contract, especially in international trade agreement. What court will have jurisdiction in event that any dispute arise from the contract.
7. Unmentioned Terms
Some time, there could be implied terms and conditions, which did not mentioned in the contract, but that does not mean such obligations and liabilities did not exist. Implied terms may came in the from of law or authority’s regulatory.
You should always check with your legal counsel before enter into any contract or agreement.
For more information or further assistance, you can contact us.
Avanta & Co