Contract Law
A Contract Is Not Tested on Signing Day
A contract is not tested on the day it is signed. At signing, the parties are usually in agreement, so many provisions appear clear and untroubling. But a contract is truly tested when circumstances change and interests diverge. Only then does the importance of details that no one noticed become apparent—
- Author
- Lawyer Omar Al-Baghdadi
- Published
- Read time
- 5 minutes
- Updated
A Contract Is Not Tested on Signing Day
When a contract is signed, the parties are usually in agreement, so many provisions appear clear and untroubling.
But a contract is truly tested not at the moment of agreement, but when circumstances change and interests diverge.
Only then does the importance of details that no one noticed become apparent:
Who bears the loss? When may the contract be terminated? What happens in the event of delay? And how is liability calculated if the project fails?
That is why reviewing a contract does not simply mean reading what the parties have agreed to; it means trying to imagine what they may later disagree about.
When reviewing a contract, the lawyer is not looking for a dispute, but trying to prevent one before it arises.
A good contract does not describe the relationship only when things are going well; it knows what to do when they no longer are.
— Omar Al-Baghdadi