You negotiated an important deal, you reduced it to a written contract, and now you are ready to sign on the polka dot line. Most people think that signing a contract is just a formality. However, it is important not to close the guard at this stage. Whether you sign the contract correctly can mean the difference between a company in good business or a chaotic legal process. Once both parties have signed, there will be a contractual agreement. If you sign that changes have been made to a contract (particularly if the changes were made electronically and it is not clear that you need to counter these changes), it is likely that you are bound by the terms of the agreement you signed. Parties do not necessarily have to sign the same copy of the contract for it to be binding. If the parties sign different copies of the contract, they must agree that each of their signature pages constitutes a complete agreement executed. For this reason, contracts often contain a provision stating that « the parties can perform this contract in return, each being considered original, and all are only an agreement. » Sometimes a contract indicates a date when signatures are required. This is common in business contracts or real estate contracts when an offer is timed. When you sign a contract, best practices suggest that you are using a color other than the color of the terms of the contract to enhance authenticity and prevent anyone from creating fraudulent copies of the contract.
Blue is the norm. Do not use a pencil because someone could handle it and avoid red ink because it is difficult to read. Signing first should not pose a risk – if the other party makes unilateral changes, you don`t have a contract. But problems could arise if you don`t bother to see what the other party is referring to, because that could lead the other party to think that you have accepted its changes. Last but not if you sign separate signature pages, you`re more likely to look at what the other page is sending you. From a legal point of view, it does not matter who signs the contract first, as long as both parties agree. Another argument is that you should first sign it so you don`t have to send it to the other party after you sign it. If you sign electronically, many of the electronic signature options automate sending a copy with signatures from all parties involved, so it`s not so much about reducing the number of associated measures. Read this article to learn more about the validity of web check boxes and electronic contracts.
This may seem like a base (and that`s it!), but you`d be surprised how often it goes into the hustle and bustle of progressing with business. Although you wouldn`t necessarily have to sign an agreement to make it valid, why would you want to take that opportunity? There is absolutely no better way to prove that a party intended to be bound by a contract, and then whipping it and indicating its signature on the document. If the parties to a contract may not sign it at the same time, you may want to consider adding a section to the contract, unless the contract is legally binding, unless it is signed by both parties. Normally, the place where the document is signed does not matter as long as each party signs it in front of a witness or notary. A signature identifies the person who created it. He often spells a person`s name in a visually distinctive way. Unless the law says so, a signature can use loops, ascendants, descendants, special characters. Since a signature is intended to verify a person`s identity for authorizing documents and agreements, it should remain consistent from one contract to another. A document normally takes effect on the date on which all signatories sign it. If they sign several days, the document takes effect on the day the last signatories sign. You can`t sign signatures.