What to Check Before Signing a Contract

A contract is decided before you sign

A contract is the document you pull out when trouble starts, but the moment that really decides the outcome is before you sign. Afterward, changing an unfavorable clause requires the other party's consent, and they usually have no reason to give it. So when you receive a contract, don't sign on the spot; ask for time to take it home and read it. A legitimate counterpart rarely objects to that. If someone presses you, saying the offer disappears unless you sign now, treat that pressure itself as a warning sign. This guide is based on general practice in South Korea.

Start with who the other party is

People often skim the party details at the top, but this is the first thing to check. For an individual, see whether the name matches their ID. For a business, confirm the trade name and business registration number match reality. If an agent shows up, look for a document showing the principal authorized them. A contract made with someone who lacked authority can later be disputed.

• Individual: does the ID name match the contract?
• Business: do the name, representative and registration number match?
• Agent: is there a power of attorney confirmed by the principal?

Clauses you must read

Not every sentence in a contract carries the same weight. If time is short, at least read line by line the clauses on money, duration and how the contract ends. Termination and penalty clauses in particular mean nothing day to day, then become the most important lines the moment the relationship sours.

• Price: amount, payment timing, whether tax is included, extra costs
• Term: start and end dates, automatic renewal
• Termination: who can end it, for what reasons and when
• Penalties and damages: how much, and in which cases
• Liability: who is responsible for defects or accidents

Put spoken promises in writing

Explanations given during negotiation, such as "you can cancel anytime" or "there are no extra fees," are hard to prove later if they are not in the contract. Ask for important promises to be written into the special terms. If the other side says there's no need to write it down, that may mean they are not firmly committed to it. If writing it in is truly impossible, at least get the explanation again by text or email.

Don't leave blanks or edits as they are

Signing a contract with an empty amount or date field risks the other side filling it in as they like. Strike through fields that don't apply or write "none." If anything was corrected by hand, both parties should sign or stamp next to it so there is no argument about who changed what and when. For multi-page contracts, signing or stamping across each page is a common way to keep middle pages from being swapped.

After signing

Once signed, each party keeps a copy signed by both sides. Getting an original or signed copy is more reliable than just taking a photo. For electronic contracts, download the completed file and store it separately. If you paid a deposit, add a memo to the transfer saying which contract it is for, and get a receipt. Keep the contract and related records for a while even after the contract ends.

Traps people often miss

Even after a careful read, some points slip by. Most hide not in the main text but in fine print at the back or in attached documents. Check the items below once more before signing. If anything is unclear, ask the other side to explain, and get that explanation in writing too.

• Does it say attachments, terms or side agreements form part of the contract?
• Is there automatic renewal, and by when must you give notice to stop it?
• Is there wording that lets only the other side change the terms?
• Which court or body was chosen to handle disputes?

When to get a professional review

Real estate deals, business contracts involving large sums, contracts that lock you in for a long time, and guarantees are best not judged alone. The same goes when a clause is ambiguous or the other side refuses any change because it is their "standard form." If cost is a concern, try a free public legal consultation first. This article is not legal advice. For your specific situation, consult a lawyer or a public legal aid service such as the Korea Legal Aid Corporation.