Contract red flags: what to check before you sign

The trap · A clause that makes you responsible for unlimited damages — or for the other party's mistakes — can turn one dispute into a business-ending bill. Watch for indemnification that only flows one way, or liability language with no cap and no carve-outs.

What to ask for · Ask for a liability cap (commonly tied to the fees paid under the contract), mutual indemnification, and carve-outs so you're not covering the other party's own negligence.

The trap · Many agreements renew automatically for a full term unless you cancel inside a narrow notice window — sometimes 60 or 90 days before the end date. Miss the window and you're committed for another year at the same (or higher) price.

What to ask for · Ask for renewal only by mutual written agreement, or a shorter notice period (30 days) with a reminder sent before the deadline. Put the cancellation date in your calendar the day you sign.

The trap · Some contracts claim ownership not just of the work you deliver, but of your pre-existing tools, templates, methods, and anything you create during the engagement — even unrelated side projects. Broad 'work made for hire' or assignment language is where this hides.

What to ask for · Ask to carve out your pre-existing intellectual property and general skills, and to limit the assignment to the specific deliverables you're being paid for.

The trap · 'Revisions until the client is satisfied' has no finish line, and payment terms like 'net-60 after acceptance' can stretch for months when acceptance is never defined. Together they let work expand while pay drifts.

What to ask for · Ask for a fixed number of revision rounds, a clear definition of acceptance (or a deemed-acceptance period), and payment due a set number of days after invoice — not after acceptance.