Red Flags: What Every Business Owner Should Look for in Contracts

In the excitement of a new deal or partnership, it’s easy to skim over the fine print. But one overlooked clause can turn an opportunity into a costly mistake. Whether you’re signing a vendor agreement, partnership contract, or service contract for your business in Emporia, Eureka, El Dorado, or elsewhere in Kansas, keep an eye out for these common red flags before you sign on the dotted line.

1. Vague or Ambiguous Language

If a contract includes phrases like “as needed,” “to be determined,” or “reasonable efforts,” pause. Those terms sound harmless, but they leave too much room for interpretation. Clear definitions protect both sides and prevent disputes later.

2. Unbalanced Obligations

A fair contract shares risk and responsibility. Watch for terms that make your side do all the work (or take all the risk) while the other side has broad flexibility to cancel, delay or change terms.

3. Auto-Renewal Clauses

Automatic renewals often hide in the fine print. You might intend for a contract to last one year, only to discover it renews indefinitely unless you cancel in writing within a narrow window. Always check how and when a contract can end.

4. Hidden Fees or Penalties

Some agreements include fees like “administrative,” “late” or “termination” fees that can add up quickly. Ask for a full list of potential charges before signing.

5. Missing Termination Rights

A solid contract should say how either party can exit the agreement. If it only lists the other side’s ability to cancel — or provides no clear path out at all — that’s a serious red flag.

6. One-Sided Dispute Resolution

Clauses that limit you to arbitration in another state (or require you to pay all legal fees) can stack the deck against you. Make sure dispute provisions are fair and local.

7. No Written Amendments

If a contract allows changes “by mutual agreement” but doesn’t require those changes to be in writing, you could find yourself bound by a verbal promise that’s hard to prove later.

Bottom Line

Before you sign, slow down and get an attorney to review the agreement. A short consultation can save you from expensive litigation or unbalanced obligations down the road.

At Harvest Legal, we regularly help Kansas businesses review, negotiate and draft contracts that protect their interests — whether you’re hiring a contractor, forming a partnership, or expanding into a new market. Contact us so we can advocate for you and your business.