Step 1: Skim the structure first
Identify section headers. Most contracts follow the same skeleton: parties, scope, payment, IP, confidentiality, term & termination, indemnification, limitation of liability, and miscellaneous.
Step 2: Read the money sections in full
Payment terms, late fees, kill fees, deposit refund — these are where you win or lose the deal in real numbers.
Step 3: Find every 'sole discretion'
If the other side has 'sole discretion' over anything (deductions, deliverables, termination), they effectively rewrite that clause later. Replace with 'reasonable' or 'mutual.'
Step 4: Check duration and notice everywhere
Auto-renewal windows, termination notice, dispute resolution windows, payment cycles. Calendar every deadline before you sign.
Step 5: Read the indemnity and liability cap
These two paragraphs decide what happens when things go wrong. One-sided uncapped indemnity is the single biggest hidden risk in contractor agreements.
Step 6: Look for what's missing
No severance? No kill fee? No notice on termination? Silence isn't safety — it's the default rule, which usually favors the more powerful party.
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Not legal advice. For informational purposes only.