NEW
AI Repository just launched this week! Try out the new features.
Contract mistakes are expensive but preventable. A 2024 Harvard Business School study found that teams with a clear contract review process cut contract-related risk by 63% and saw a 42% boost in how well those contracts actually performed.
Still, many teams rely on guesswork, scattered edits, or last-minute reviews. Luckily, a structured contract review checklist can easily change that. More specifically, it can give you a clear process, help you catch issues early, and save you from problems down the line.
In this quick guide, you’ll learn why a checklist matters, what to include, and how to create one that actually fits how your team works.
Contracts set the rules, define expectations, and hold everyone accountable. Even so, many people rush through the contract review process and hope for the best. That’s clearly a gamble that you would not want to make.
A contract review checklist helps you slow down just enough to catch issues before they turn into problems. It allows you to:
Not every business or law firm works the same way, and contract review processes can vary a lot. Still, there are a few things almost every agreement should include. Use this checklist as a starting point:
Before you dig into the fine print, start with the basics. It might sound simple, but confirming the full legal names, roles, and up-to-date contact details of everyone involved is one of the most important steps when you review contracts.
Be clear on who’s signing, what their role is, and how they can be contacted. If the contract mentions a company, make sure it’s the correct legal entity, not just a brand name or shortened version. If it names individuals, double-check their job titles and responsibilities.
Also, pay close attention to how each party is described throughout the document. Inconsistent wording can create loopholes or make it harder to protect your interests if there’s a dispute later on.
Always check the effective date, expiration date, and any language around extensions. Many contracts include automatic renewal clauses that can lock you in if you miss the deadline to cancel.
Look for any notice periods required to end or renew the agreement; these are often buried in the fine print. Plus, make sure the timeline works for your business and doesn’t create confusion about when the contract starts or ends.
No matter the contract type, the scope of work or services section needs to be specific. This is where things often go wrong if the language is too vague or packed with boilerplate language that doesn’t actually explain what’s being delivered.
A clear scope helps both sides understand their duties and reduces the risk of arguments if one party fails to meet expectations. Look for and check:
Review this section carefully and don’t assume the other party understands your expectations. A well-written scope protects everyone and sets the tone for how the rest of the work will play out.
Money often becomes a sticking point, so the payment terms deserve close attention.
Make sure the legal agreement clearly states how much is being paid, when it’s due, and how invoices should be handled. If there are late fees, penalties, or refund conditions, they should be easy to spot and understand.
For example, if one of the contracting parties expects payment within 15 days of invoicing but the contract says 30, that’s a mismatch that can lead to tension or delays. These small differences can lead to big problems later.
Checking this section helps reduce potential risks around missed payments or unexpected charges. Don’t gloss over it, regardless of the length of the contract.
Even in a straightforward contract, it’s important to know how and when the agreement can be ended. The termination clause should explain who can cancel the contract, under what conditions, and what each side is responsible for if that happens.
For example, if one party wants to back out early, do they need to give 30 days’ notice? Are there penalties or fees? If the clause is vague or one-sided, it could create unnecessary potential risks down the line.
Also, check if termination triggers any specific actions under the governing law, especially if the contract crosses state or country lines.
Confidentiality provisions are there to make sure private or business-sensitive information stays protected. When you review this section, look for clear obligations around what can and can’t be shared, who can see the information, and how long those rules apply, even after the contract ends.
Make sure the terms follow any industry regulations that apply to your work. And don’t assume generic language will cover everything. Determine if the contract actually matches how you need your information handled.
Examples of what might be covered:
If confidentiality isn’t clearly addressed, you’re leaving too much open to risk.
During any business contract review, you need to confirm who owns the work, content, or ideas created under the agreement. If this section is missing or unclear, it can lead to confusion or even a legal breach later on.
Look for language that spells out ownership, licensing rights, or limits on how the work can be used. This matters whether the contract covers:
Clear terms protect both sides and support compliance with industry standards, especially when intellectual property is involved.
This section covers who’s responsible if something goes wrong, and how damages, legal claims, or losses are handled. It often gets skipped during the initial review, but it’s one of the most important parts of the contract.
When reviewing the following sections on liability and indemnity, look for clauses that outline limits on responsibility or any situations where one party must cover the other’s legal costs. These terms can shift risk, so make sure they’re fair and realistic.
Also, confirm the contract’s terms comply with relevant laws, especially if the agreement covers multiple states or countries. Unfair or unclear wording here could expose your business to unnecessary legal or financial risk. If the terms seem too one-sided, flag them for legal input before signing.
Dispute resolution clauses explain what happens if things go sideways. It’s crucial to know how disagreements will be managed and which rules apply.
Before you sign, decide if the process works for your team, and don’t be afraid to revise it if it doesn’t. For your reference, common dispute resolution methods include:
Also, check what law will apply and where disputes will be handled. These details help you maintain control and avoid surprises if a disagreement happens.
The entire agreement clause confirms that the written contract is the full framework for the deal. That means any promises or side conversations not included in the contract may be ignored later. During your review, give this section proper consideration.
If something matters, it needs to be in the contract itself. Never assume that verbal agreements will hold up. This clause can easily cancel out side deals you thought were valid, so double-check that everything important is written down and agreed upon in clear terms.
Contracts often include renewal terms, and missing them can lock you into deals longer than you planned. There are usually two types to watch for:
Both should be clear, with deadlines that are reasonable. If not, ask to revise them before signing. Additionally, consider using contract renewal management software to oversee renewals much more easily.
Before a contract becomes valid, all parties need to sign it. This is one of the most important steps, and it’s easy to overlook the details when you’re ready to wrap things up. A proper final review confirms that the contract is accurate, complete, and legally binding.
Take a moment to go through this quick checklist:
If electronic signatures are used, make sure the e-signature software complies with local laws and that the contract mentions this acceptance. Wrapping up with a proper review avoids confusion later and confirms everyone is truly on the same page.
Creating your own contract review checklist doesn’t have to be complicated. The goal is to make something that fits your contract workflow and helps you catch issues before they become problems.
That said, we've created a quick guide to get you started:
Remember: A solid checklist saves time and helps you stay consistent, no matter who's doing the review.
As you can see, reviewing contracts properly takes more than just a quick skim. There’s a lot to keep track of, and it’s easy to miss something if you don’t have a system in place. A clear checklist helps, but the process still takes time and coordination.
Luckily, there's a contract review tool that can transform your current process.
Aline is the best contract review software to get around the tedious and most error-prone parts of reviewing contracts. If you want more control over your contract review process without adding extra steps, Aline gives you the tools to do just that.
It’s built for legal, sales, and ops teams that need to review, approve, and organize contracts with ease. With this platform, you get:
You’re already thinking about how to review contracts the right way. Aline helps you do it faster, with fewer gaps, and more consistency across your team.
It’s a tool that helps you stay organized when reviewing agreements. It guides you through key sections so you don’t miss important terms or make assumptions about what’s included.
Yes. A checklist gives non-lawyers a reliable way to spot unclear terms, missing details, or anything that might need legal input, without needing to know legal jargon.
Review your checklist every few months or after handling a new contract type. Keeping it current helps you adjust to changes in your business or industry.
It helps you identify potential issues early, like vague language, one-sided terms, or inconsistent clauses, so you can fix them before signing. That means fewer surprises later.
Brent is an attorney, a full-stack JavaScript engineer and the CEO of Aline.
Subscribe to our newsletter to receive new posts straight to your inbox 👇
