Every party you work with, including shareholders, partners, employees and possibly clients, should sign an agreement. Contracts are crucial, and they can tell you are responsible. But how soon should you give a party a contract?
Here is what you need to know about how long it takes to understand a contract.
It depends on the complexity of the clauses
Some employers average the time it can take for a party to read and sign a contract based on the number of pages, but this is not always accurate. The key factor to consider is the complexity of the clauses.
It can take a partner longer to review a 10-page contract than it would an employee to read the same number of pages on their contract because the former’s agreement may have complex terms. Thus, if you want to start a partnership by a certain date, you should give the partner the contract sooner.
But this does not mean you should give your employees their contract a day before reporting or doing so on the same day. They also need time to understand their agreement’s terms.
Consider the time a lawyer will take to review it
Any party you give a contract to, including employees, can have an attorney review it. This can take time, which you should consider. It’s vital to encourage the parties involved in your business to do this to be on the same page from the beginning.
When should you ask for the contracts?
It will be best to wait for one to submit their contract, as you don’t want to rush them. However, when the date the partnership or employment should start nears, you can remind them.
It’s crucial to give the parties you plan to work with contracts sooner. You should get legal guidance to create watertight agreements.
