November 2026 · Abdulmalik Alwarhi
Reviewing a contract before signing costs far less than litigating it afterwards. These are the seven points we check in every commercial contract we receive.
1. The parties and the signatory's authority
Confirm the other party's full name and commercial registration number, and that the person signing has authority under the articles of association or a written mandate.
2. Scope of the obligations
What exactly will be delivered, when, and to what specification? Phrases like "as agreed" invite disagreement.
3. Price and payment
The amount, whether it includes VAT, the payment schedule, and the consequences of late payment.
4. Penalty and damages
Is there a penalty clause? Is it proportionate? Does it exclude further damages or not?
5. Termination
When each party may terminate, on what notice, and what is owed on early termination.
6. Confidentiality and intellectual property
Who owns what is produced during the work, and which information stays confidential and for how long.
7. Dispute resolution
Court or arbitration, the seat, and the governing law. This clause decides how long and how costly any dispute will be.
This article is general information, not legal advice on any particular matter.
