7 Questions to Ask Before You Sign

A contract can look polished and still leave a business exposed. Before signing, slow the conversation down long enough to understand what the agreement requires, what it costs, and how the relationship ends.

Contracts is a practical SKYLA series about the business systems surrounding agreements. It is educational information—not legal advice—and important contracts should be reviewed by qualified counsel.

1. Scope: What is actually being promised?

The scope should identify the work, deliverables, responsibilities, deadlines, assumptions, and anything specifically excluded. Words such as “support,” “management,” or “as needed” can create different expectations unless the agreement defines them.

2. Payment: When is money earned and due?

Confirm the fee, deposit, billing schedule, reimbursable expenses, late-payment terms, refund rules, and any automatic price changes. The contract should also explain what happens when work pauses because information, approvals, or payment are delayed.

3. Changes: How does the scope expand?

Projects change. A written change process protects both sides by identifying who may authorize additional work, how new fees are approved, and whether a revised timeline is required.

4. Term and termination: How does the relationship end?

Review the initial term, renewal rules, required notice, termination rights, final-payment obligations, and what each party must return or transfer. Pay special attention to automatic renewals and long notice periods.

5. Ownership and confidentiality

Clarify who owns the final deliverables, pre-existing materials, templates, data, accounts, passwords, and intellectual property. Confidentiality obligations should be realistic and should not accidentally prevent lawful recordkeeping or professional review.

6. Risk allocation

Indemnity, limitation-of-liability, insurance, warranty, and dispute provisions can shift substantial risk. These clauses deserve professional review when the financial exposure, regulated activity, sensitive data, or business dependency is meaningful.

7. The operational test

A contract is only useful if the business can administer it. Assign an owner, record key dates, store the signed version, track deliverables, monitor renewals, and preserve related approvals. Contract management is an operating system—not a folder full of PDFs.

Before You Sign

Ask three questions: Do we understand every obligation? Can our people and systems perform it? Have the legal and financial risks been reviewed at the right level? If any answer is unclear, pause and resolve it before signing.

SKYLA helps businesses strengthen the operational systems surrounding contracts, documentation, accountability, and risk. SKYLA does not provide legal advice; consult a qualified attorney regarding your specific agreement and jurisdiction.