Why Its Important To Read The Fine Print In Contracts

Navigating contracts is a task SMEs are usually faced with daily. And as important as it is, reading the fine print can be a headache to many.

Contracts with employees, service providers or clients are binding agreements between the parties within which the expectations, terms and costs of the agreement are explicitly stated.

Greer Penzhorn, Lulas Head of Legal, says the nitty gritty is often overlooked, and overlooking it can have a detrimental impact on a business. If an SME owner prioritises the operation of thriving business, they will know the importance of understanding the small print.

Penzhorn says the terms of the written agreement will be upheld in the South African courts. Signing any contract means one understands and agrees to the terms and conditions. It is better to take the time to unpack the small print and ensure that anything that seems unclear or unfair is negotiated before signing the final contract.

Business owners usually rely on verbal discussions and assurances provided by the other party, just to avoid going through the fine print. Thus, they end up simply signing a contract without reading it, especially if they have done business with the person before.