Monday, June 6, 2016

5 Five Documents You Should Not Sign "As Is"

I know how busy you can be.

Sometimes you can barely get through your email inbox, so you certainly don't have time to ready everything that comes across your desk.

This means you sign "paperwork" without thoroughly reading it.

The copier guy delivers a new machine and you "sign for it."

The guy who does your pest control work takes off his mask (which is actually a chemical filtration respirator) long enough to hand you a pen to sign the "standard service form."

You pick up a car at the rental counter and you sign a 3x12 card in two places and initial it in 3 other places...and you can't even read the print with a magnifying glass.

My point: We've created a cultural norm that makes it perfectly acceptable to sign things without full and complete knowledge of the information contained on the very document we are signing.

As a reality check - I don't think I'm ever going to convince you not to sign a car rental agreement or make changes to your copier lease. But there are some really risky documents you sign all the time without a second thought.

Here are five documents you should examine closely before you sign:

Commercial and Residential Leases: Many of these leases are onerous and highly biased toward the landlord. It is not uncommon for them to include personal guarantees, rent escalation clauses, and usurious interest and fees for minor issues. At best, you receive a form agreement that does nothing to protect your rights.

Insurance Paperwork: Insurance companies make a lot of money. They do so by limiting their liability. All of us assume there are regulations that protect us when we purchase insurance. You don't want to comb through your insurance documents after a catastrophic event to make sure you are covered.

Contracts with Your Clients: Many businesses rely on template contracts when a client engages them. Every client and every situation is different. In many cases, the service you provided or the product you sold is different. So why would your liability be the same and why would you use the same template contract over and over?

Employment Agreements: Much like clients, employees in different roles will have different responsibilities. Some of them may need to adhere to strict confidentiality requirements while others may not have that type of exposure. Some employees may have specific responsibilities that are clear and evident while others may not be able to see through the ambiguity of the language in the agreement. This means you need to spell things out. And a template document cannot do that in every instance.

Confidential Information: Data privacy is a big deal. If someone provides you with information that, if used in a nefarious way, could cause harm, you need to have clear documentation detailing the handling and use of that information. If that documentation is not prepared in a way that minimizes your liability, you should never, ever sign it.  
Here's the reality: You shouldn't sign any legal agreement without having a lawyer review it.

Why? Because those documents were prepared by attorneys and they were designed to protect the interests of the other side. Who is looking out for your interests when you sign something without an attorney's review?

EVEN YOUR ATTORNEY'S ENGAGEMENT AGREEMENT SHOULD BE REVIEWED BY ANOTHER LAWYER.

Yes, most of the time you'll be fine without taking your car rental agreement to your lawyer for review. But it would be nice to know if you should accept the collision damage waiver, right?

Bottom line: If a lawyer wrote it, your lawyer should review it BEFORE you sign it.

Please keep us in mind for all your legal needs.

Sincerely,

Mario Biaggi Jr.