Research shows that many business owners, employees and consumers fail to properly read contracts before signing them. University of Law data found 68% either do not read or do not understand contracts for services such as subscriptions and utilities, while 55% read contracts only partially and struggle to understand the terms. A separate Adobe survey revealed 62% of small business owners sign contracts without knowing the details, and 64% avoid signing contracts when they are not confident about the terms.
In response, Yorkshire-based LCF Law has launched LCF Counsel, a service providing SMEs with unlimited, within-scope commercial legal advice for a fixed monthly fee. The most common requests relate to contract review.
James Sarjantson, head of commercial and digital at LCF Law, said: “LCF Counsel gives growing businesses, typically with up to £4m turnover, direct access to expert legal advice whenever they need it for a fixed monthly fee, because running a business means making dozens of decisions every day and many of these will have legal implications. Contracts are nearly always long and often complicated documents, but if businesses simply sign them without fully understanding what they’re agreeing to, it can have major consequences. Although most honourable businesses won’t hide deliberately punishing terms in the small print, problems often arise when it comes to things like price increases, financial penalties, subscription lengths and termination clauses. We review commercial contracts every day between our clients and their suppliers, which helps them manage risks, avoid pitfalls and hold the other party to its promises. In addition, it can be just as much of a minefield with a company’s own terms and conditions, which are often a major legal risk, so we also guide businesses through the contracts they have with their customers. This means ensuring that contract terms protect the business, are enforceable and work in the real world.”
He added: “Other common areas that LCF Counsel advises on include protecting intellectual property, data protection issues, consumer law, e-commerce regulations and privacy requirements.”
LCF Law has highlighted key points that businesses and consumers should check when reviewing contracts:
1. Basic details – Correct names and contact information, start, end and renewal dates, and a clear description of the contract’s purpose.
2. Key terms – Defined deliverables or responsibilities, payment terms including amounts, due dates and penalties, termination clauses, confidentiality terms, intellectual property ownership, and liability clauses.
3. Obligations and rights – Duties of both parties, performance standards, and any warranties or guarantees.
4. Legal and compliance – Governing law, dispute resolution methods, compliance with regulations, and non-compete or exclusivity clauses.
5. Practical considerations – Processes for changes or amendments, renewal or extension, exit strategy, and signatures of authorised representatives.
6. Final checks – Ensure no blanks, inconsistencies, or undefined terms, and that all referenced documents are included.
LCF Law is an award-winning full-service firm operating regionally, nationally and internationally, with over 145 staff across offices in Leeds, Bradford, Harrogate and Ilkley.
