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contract checklist

Initial Review

Identify the parties involved in the contract

Verify the legal capacity and authority of the parties to enter into the contract

Determine the type of contract (e.g., sales, services, employment)

Review the contract's title and date for accuracy

Confirm that the contract is in writing and properly executed

Evaluate any preliminary clauses or recitals for accuracy and clarity

Essential Terms

Identify and review the essential terms of the contract, such as parties' names, obligations, payment terms, and duration

Ensure that the essential terms are clear, unambiguous, and adequately protect the client's interests

Analyze any conditions precedent or subsequent and assess their reasonableness

Scope of Work

Review the contract's scope of work or description of services to ensure it accurately reflects the client's requirements

Assess if the scope is well-defined, specific, and measurable

Evaluate any performance metrics or deliverables mentioned in the contract

Determine if the scope aligns with the client's expectations and objectives

Legal and Compliance

Identify any legal and regulatory requirements applicable to the contract (e.g., industry-specific regulations, data protection, intellectual property)

Assess if the contract complies with applicable laws, regulations, and industry standards

Review any indemnification, warranties, or limitation of liability clauses for fairness and reasonableness

Verify that appropriate dispute resolution mechanisms are included (e.g., arbitration, mediation)

Financial Considerations

Evaluate the contract's pricing structure, including fees, payment terms, and methods of invoicing

Assess any provisions related to price adjustments, cost escalation, or currency fluctuations

Review any penalties, liquidated damages, or termination clauses related to non-payment or financial obligations

Verify that the contract adequately addresses invoicing, expense reimbursement, and late payment policies

Termination and Renewal

Review the contract's termination clauses, notice periods, and grounds for termination

Assess any automatic renewal provisions and determine if they are reasonable and in the client's best interest

Identify any rights or obligations that survive contract termination

Evaluate any exit or transition provisions to ensure a smooth termination process

Miscellaneous

Review any miscellaneous provisions, such as force majeure, governing law, and entire agreement clauses

Assess the clarity and enforceability of any ambiguous or conflicting terms

Identify any missing or incomplete sections that need to be addressed or revised

Confirm that the contract is consistent with the client's internal policies and guidelines

Additional Considerations

Identify any additional considerations specific to the client's industry or business needs

Review any special requirements or provisions unique to the contract

Assess the need for legal opinions or additional legal advice

Consider any risk mitigation strategies or recommendations

Remember, this is just a sample checklist, and you may need to customize it based on your law firm's specific requirements and practice areas.

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