Lesson 3: Contract term

Before you start reviewing a contract, check that it hasn’t expired.

Before starting your review, first check the contract hasn’t expired mainly because reviewing an expired contract could be a waste of time and resources, as the terms and conditions may no longer hold any weight or relevance.

When conducting due diligence or preparing for an acquisition, it's crucial to prioritize the review of active and enforceable contracts. Reviewing expired contracts may divert valuable time and resources away from more pressing and relevant documents.

To determine whether a contract has expired, you will need to check the end date (or expiry date) of the contract and whether there are any options to extend the term of the contract that haven’t been exercised yet.

If the contract has expired, you should flag this with your supervisor and/or client, especially if it is a material contract.

If a contract has expired, it may present an opportunity for renegotiation or the establishment of new terms and conditions that better align with the current needs and interests of the parties involved.