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Contracts, whether for products or professional services, truly are the lifeblood of many small businesses…
the more, the better. In the first quarter of 2026, here are some guiding principles to bear in mind before you enter into those emblems of revenue.
My continuing mantra to my clients is to
read, review (not the same thing as reading, by the way), and discuss before you sign.
In my experience, an educated client is a smart client who knows how to use her lawyer’s time efficiently.
I was reminded of this recently when a client forwarded a new contract for review and comment. What was her method of approach? She…
… first read it through on her own and listed specific concerns and questions for my consideration,
… included the previous contract with a different vendor, and
… set up a conference call for us to discuss before I put fingers to keys with revisions.
In other words,
my client did exactly what she should to maximize the time her lawyer spent on the contract.
After all, don’t you find it more efficient when your customer presents you with factual information as a foundation for your services?
As you review a new contract,
beware of two commonly overlooked and/or forgotten provisions
that can come back to bite you.
#1. Automatic Renewals
Automatic renewals — as opposed to a firm termination date — can be problematic.
If you miss a deadline to non-renew, you may find yourself working another year with a vendor
whom you were not exactly thrilled with.
If the other party won’t agree to a fixed date, make sure you have plenty of time to exercise non-renewal. Thirty days may be too short; 90 days is more realistic.
#2. Termination for “Convenience”
You thought you were entering into a multi-year contract — and had already mentally booked that revenue and allocated resources. But this provision, which has become the norm,
allows a (usually large) company to walk away on 30 days’ notice, scot-free.
You won’t win the argument to get rid of it, but
at least make sure it is mutual
(rarely a large company’s starting point). And certainly try for an early termination fee for the privilege. If you can’t get that, lengthen the notice period to give yourself some breathing room.
Final Thoughts
Small business owners are working harder and smarter these days, taking nothing for granted and using resources carefully.
My most successful clients at this point are the ones who do their homework and ask me questions before they sign a contract
(so they know what they are getting into).
And while not all contracts or contract provisions are negotiable, it does mean entering into them as an educated business partner, knowing what the most obvious risks and their possible outcomes are before you accept them. After all, this is why you “read and review” in the first place.
So yes, go forth and multiply (contracts, that is!).
But do it with eyes wide open, a tracking system in place for important future dates, and all risks reviewed, categorized, and analyzed.
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