Lesson 4: Contract types

Before reviewing your document, check what type of contract you’re reviewing and make sure you have the right document review checklist.

It’s important to use a checklist for the following reasons:

1. Different types of contracts have different legal requirements, clauses, and provisions that need to be carefully examined. For instance, an employment contract will have different key elements compared to a lease agreement or a supply contract.

2. Using a tailored checklist for the specific type of contract ensures that you do not overlook any critical aspects or terms that could significantly impact the transaction or the client's interests.

3. Specific checklists help you organize your review process and maintain consistency within your team of reviewers. They serve as a guide, ensuring that you cover all the relevant sections, clauses, and potential areas of concern for that particular type of contract.

4. Certain types of contracts may be subject to specific laws, regulations, or industry standards that must be considered during the review process. A tailored checklist will help you identify and address these requirements.

5. Utilizing the correct checklist can also help you prioritize the review process, focusing on the most critical areas first, and allocating time and resources effectively.

6. Contracts can have significant financial implications, legal liabilities, and operational impacts on the target company. A thorough review using the appropriate checklist can help identify potential risks, liabilities, or areas that may require renegotiation or modification.