Why You Should Never Sign A Contract Without Legal Review

Every day, people sign contracts without thinking twice. From employment agreements to property leases, partnership deals, loan documents, and service contracts, agreements are everywhere. Yet, many individuals and even businesses sign these documents without reading them carefully and worse still, without seeking legal advice. This can be a costly mistake.

A contract is not "just paper." once a contract is signed, it becomes legally binding. This means you are committing to its terms, whether or not you fully understood them and ignorance of the law is not an excuse.

The following are key facts to be noted:

1. Contracts Are Binding Even if They Are Unfair:-
It is important to understand that not every agreement is written with your best interest in mind. Some contracts are drafted to favor one party more, leaving the other exposed to risk or loss. Nigerian courts have consistently held in a plethora of cases like Odu'a Investment Co. Ltd v. Talabi [1997] 10 NWLR (Pt. 523) 1) that once parties freely sign an agreement, they are bound by its terms, no matter how onerous.

This means you could unknowingly agree to:
" Give up your right to sue (hidden waiver clauses).

" Accept penalties or liabilities that are unreasonable.

" Be trapped in automatic renewal clauses that tie you down for years.

Once signed, your options for challenging or renegotiating those terms become very limited.

2. Lawyers Help You Spot Hidden Risks:-
One of the main reasons to involve a lawyer is that legal professionals are trained to detect vague, ambiguous, or harmful clauses that an average person might overlook. Section 131 of the Evidence Act, 2011 (as amended) places the burden of proof on the party alleging facts meaning, if you claim "this isn't what I agreed to," but you signed the contract, the law presumes you accepted its terms unless you can prove otherwise.

A lawyer not only reads the contract but interprets how those words translate into real-life consequences. For instance, a simple phrase like "the company may terminate at its discretion" could give the other party sweeping powers to end the agreement without notice or compensation.

3. What Is Written Overrides Verbal Promises:-
Another common mistake is trusting verbal assurances. Nigerian law is clear: Section 128 of the Evidence Act, 2011 (as amended) provides that oral evidence cannot be used to contradict, alter, or vary the terms of a written contract. In simpler terms, what is written is what counts. Even if the other party verbally promises that certain terms won't be enforced, those assurances mean nothing if the contract says otherwise.

4. Prevention Is Better Than Cure:-
This principle has been echoed in several Nigerian cases. In Abraham v. Chief Oluwa[1994] 17 NLR 123, the court held that both parties were mistaken about the title of the land, therefore the contract of sale was void ab initio, meaning it was invalid from the start. Unfortunately, many people only seek lawyers after a dispute arises at which point, remedies are limited.

Whether in business transactions or property dealings, prevention is cheaper and wiser than litigation. A poorly drafted contract can lead to disputes, lawsuits, and heavy financial losses.

Conclusion:-
No matter how simple or routine a contract appears, always take the time to review it with a lawyer. This small step can save you from major legal and financial trouble. Protecting yourself legally is not about distrust; it is about wisdom and responsibility.
Get a lawyer to assist in the reviewing, drafting, and negotiating of contracts to ensure every agreement safeguards your rights and interests.

Before you sign, call your lawyer. It could save your business, your money, and your peace of mind.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.