You"ve negotiated vital agreement, you"ve lessened it to a composed contract, and now girlfriend are all set to authorize on the dotted line. Most human being think that in reality signing a contract is a only formality. However, it is necessary not come let your guard down at this point. Even if it is you appropriately sign the contract might make the difference in between a smooth business transaction or a messy court fight.
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The adhering to steps must be adhered to when signing any kind of contract:1. Make certain the Contract You"re Signing Is the Contract you Agreed come Sign
If the contract has actually gone through a number of rounds of negotiations or revisions, don"t just assume the the copy placed in front of girlfriend to authorize is what friend think the is. Before you authorize it, be absolutely sure that you fully know and also understand the terms of the document. Under Michigan law, you are usually bound through a contract that you sign even if you have actually no knowledge of its contents. Unless you have the right to prove the the various other party involved in fraud or various other wrongdoing in prepare the contract or inducing girlfriend to sign it, you will certainly be required to abide through it.2. Date the Contract
While a contract does not need to be date in order to be valid and enforceable, that is a great idea to execute so. Date a contract will help you to positively identify it later on if you need to and will help you location it in its ideal chronological context. Also, it is legitimate in Michigan come predate a contract. In various other words, girlfriend can administer that your contract is entered into "as of" or "effective" a date earlier than the date of the contract is in reality signed. If that is done, the contract will certainly be effective retroactively "as of" or "effective" that previously date.3. Make certain Both Parties authorize the Contract
This might seem favor a an easy (and the is!) however you"d be surprised at how regularly this slips by in the hustle and bustle of gaining on v business. Although girlfriend don"t necessarily have to sign an agreement for it to be valid, why would you desire to take the chance? over there is absolutely no better way the proving that a party intended to it is in bound by a contract climate by whipping the out and also displaying your signature on the document. If the is possible that the parties to a contract will certainly not authorize it in ~ the exact same time, you might consider adding a ar in the contract giving that the contract will certainly not it is in legally binding unless it is signed by both parties.
The parties carry out not necessarily need to sign the very same copy that the contract in order for it to it is in binding. If the parties execute sign different duplicates of the contract, they need to agree the each of their signature pages with each other constitute a complete executed agreement. That"s why contracts often contain a provision stating the "the parties might execute this contract in counterparts, each of i m sorry is considered an original and every one of which constitute only one agreement."4. Do Sure any kind of Last Minute alters to the Contract room Initialed
The ideal course of action is come have any kind of changes consisted of in the signature variation of the contract. This will aid ensure there space no misunderstandings regarding what the parties intended come sign. However, if that is not possible to have actually have a contract revised and reprinted before it is signed, make sure that any changes made to the contract through hand room initialed by each party come the contract.5. The Parties must Sign the Contract in their Correct Capacity
If an entity is a party come a contract, it is imperative that the signature block effectively identifies the party signing on instead of of the entity. For example, if someone is signing together president the a corporation, the signature block have to look something prefer this:
Acme Widgets, Inc.
By: _________________John Doe
Why is this so important? since signing appropriately on behalf of one entity will prevent any later cases that the person signing the contract is personally liable for the entity"s contractual obligations.6. Make certain the various other Party has actually Authority to authorize the Contract
The importance of this cannot be over emphasized. Obviously, you do not desire a company to case that the doesn"t have to abide through the contract because it was signed through someone who was no authorized to do so. Thus, if the various other party to the contract is a corporation, you must be certain that the coporation, group is in reality in existence, that the human signing on behalf of the corporation has the authority to do so, and, that the contract was approved by the corporation"s shareholders or directors.7. Save an initial Signed Copy that the Contract in your Files
Each party should gain an original signed copy that the contract for their files. That way if there are two next to the contract, two similar contracts should be signed. One original copy of the contract must go to you, and also one original copy must go to the other party.
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Please feel free to call Michigan contracts lawyer Michael J. Hamblin for an ext information on just how he can assist you through your legal needs.