When you hear the term “contract analysis,” it may sound like a daunting and complicated process. However, contract analysis is simply the process of reviewing and understanding the terms of a contract. This can be done by anyone who is interested in understanding the contract, whether they are a party to the contract or not.
There are many reasons why someone might want to perform a contract analysis. For example, if you are considering entering into a contract, you may want to have a clear understanding of the terms before you agree to them. Or, if you are already a party to a contract, you may want to review the terms to make sure that you are still in compliance with them. Additionally, if there is ever a dispute between the parties to a contract, each side will likely hire an attorney to review the terms of the agreement and determine what remedies may be available.
Contract analysis generally begins with a review of the entire agreement. All of the provisions in the contract should be read and understood before moving on to anything else. After that, it may be helpful to focus on specific areas of concern or interest. For example, if you are primarily concerned with payment terms, then you would want to specifically look at any clauses that pertain to payments. Similarly, if you are mostly interested in understanding your rights and obligations under the contract, then you would want to focus on those clauses that lay out those rights and obligations.