The lawyer named ways to identify dangerous clauses in the contract.
Signing an agreement is not just a formality, but a key moment that determines how well the interests of the parties will be protected. In an interview with Izvestia on August 14, lawyer Emilia Nevskaya explained which "red flags" should be paid attention to when drafting a contract.
According to the expert, many people are mistaken, believing that legal traps are reserved for exceptionally complex or multi—page contracts. Even the most common transactions from renting an apartment to providing household services can have serious pitfalls, especially if the signatory is not used to reading the fine print, trusts his word or believes that everything is clear.
Nevertheless, it is in the text of the agreement that the very "red flags" are often hidden, which should alert and prompt additional verification, and in some cases, refusal to sign.
The first thing that should alert you is the vague, ambiguous wording. If the paragraph can be interpreted in two ways, it is most likely not an accident, warns Emilia Nevskaya. In legal practice, such moves are often used as a way to reserve the opportunity in the future to interpret the condition in a convenient way.
"For example, the phrase "services are provided within a reasonable time" sounds quite friendly, but in case of a dispute it gives room for manipulation, because it is unclear what exactly is considered reasonable — a day, a week, a month? You should pay special attention to the points regarding the deadlines for fulfilling obligations, the cost, the terms of payment and the possibility of termination. The more precise and unambiguous the wording, the safer it is for both sides," the lawyer clarified.
Sometimes the contract may contain clauses that directly contradict the current legislation. This is especially true for lease, contract, or service agreements.
An example is a clause on the complete waiver of claims in case of a poor—quality result. Such a clause is legally void, as it violates the basic provisions of the Civil Code of the Russian Federation on consumer protection. However, its presence indicates that the counterparty is counting on the ignorance of the other party.
Similarly, it is forbidden to include provisions in the contract that limit the possibility of going to court or impose excessive fines for minor violations. Such conditions will also not be valid, but the very attempt to include them should alert you.
Each contract must contain a certain set of essential conditions, without which it is considered not concluded. For a purchase and sale agreement, this is the subject and price, for a lease - the object, the term and amount of rent, for a contract — the volume and nature of work, the deadline. The absence of these key conditions invalidates the contract, even if it is signed by both parties.
"Sometimes it's the result of carelessness, but more often it's a way to leave room for maneuver. For example, if the repair contract does not specify which works and to what extent should be performed, the contractor can do the minimum and claim that he has fulfilled his obligations. In this case, the claim will be difficult, it will be difficult to formally prove something," the expert noted.
It is also important to pay attention to the applications and specifications, as they may contain critical information, from technical requirements to the delivery schedule. The absence of these documents or a formal mention without an attached text is another reason to be wary.
In addition, some treaties contain extensive sections with reservations and exclusions. At first glance, it may seem that these are just clarifications designed to structure the obligations of the parties. However, it is here that the most dangerous conditions can hide, warns the interlocutor of the publication.
For example, the wording "the contractor is not responsible for losses incurred as a result of the actions of third parties" may seem logical, but in practice it allows the contractor to escape responsibility if he has engaged a subcontractor and he has made a mistake.
This also includes conditions that limit how rights can be protected. If a contract prohibits going to court or imposes arbitration, especially in another city or country, this is a direct restriction on access to justice.
Another common pitfall is automatic contract prolongation. Some contracts include wording according to which the contract is automatically extended for a similar period if neither party has declared termination a certain number of days before the end date. This may seem convenient, especially if the cooperation is going well, but it becomes a problem when you plan to end the relationship and simply forgot to send a notification.
In some cases, automatic renewal may be accompanied by a revision of the terms, for example, in the direction of increasing the tariff or tightening the payment schedule.
"The clause on the responsibility of the parties is one of the most important in any contract. It is he who determines what sanctions are applied in case of violation of the conditions, in what amount damages are collected and whether compensation is possible," the specialist said.
An excessive bias can be a dangerous signal, when one party bears full responsibility, and the other actually relieves itself of all obligations: for example, if one party is obliged to pay a penalty for delay, even for one day.
Fyodor Sidorov, a private investor and founder of the School of Practical Investing, told Izvestia on June 10 that the choice of an investment tool critically depends on the time period: some options are beneficial only for a short distance, others for a long game.
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