Every business owner has signed a contract they didn't fully read. It's uncomfortable to admit, but it's almost universal — especially in the early days when momentum feels more important than paperwork.

The problem is that contracts don't care about momentum. They care about what's written.

The most common mistakes we see

The first is vague scope of work. When a contract doesn't clearly define what's being delivered, by when, and to what standard, you're essentially agreeing to a disagreement waiting to happen. "Reasonable efforts" and "as needed" are phrases that sound professional but mean almost nothing in a dispute.

The second is missing termination clauses. Many small business contracts have no clear exit — or worse, they have one that heavily favours the other party. You should always know how and when you can walk away, and what it will cost you to do so.

The third is automatic renewal terms buried in the fine print. We've seen businesses locked into supplier agreements for an additional year simply because they missed a 30-day cancellation window hidden on page seven.

Payment terms that protect you

Late payment is one of the most common sources of business friction, yet most contracts treat it as an afterthought. A well-drafted contract should specify payment timelines clearly, include interest on overdue amounts, and outline consequences for non-payment — including your right to suspend services.

Jurisdiction and governing law

If you're working with clients or suppliers in other regions, the question of which country's or state's law governs the contract matters enormously. This is often overlooked until a dispute arises — at which point it becomes very expensive very quickly.

What to do before you sign

You don't need a lawyer for every contract you sign. But you do need one for anything that involves significant money, a long-term commitment, exclusivity, or intellectual property. A one-hour contract review can save you months of dispute and thousands in legal fees.

At Lawden, we review contracts daily. The patterns we see are consistent — and almost always avoidable with the right advice upfront.