A contract is an agreement between two or more people that is legally enforceable. People age 18 and older may enter into a contractual arrangement on a wide variety of matters ranging from employment to obtaining a bank loan. Other typical contracts that are entered into are marriage, divorce, leases and insurance.

The advantage of a written contract is that it protects people against poor memories. Over time, even honest people often remember their agreements differently. Should a dispute occur, it’s best to have a written agreement upon which to rely.

There are also disadvantages to a written contract:

• Consumers often feel compelled to use printed form contracts that favor the seller. For example, some contracts attempt to limit warranties and have wording that indicates consumers must pay the seller's legal fees if the seller sues to enforce the contract.
• Some words written into contracts have technical legal meanings that most people don't understand.

Tips to consider before signing a contract:

• Do not assume that a printed form contract must be okay.
• Do not be intimidated by aggressive sales people or overly trustful of friendly ones.
• Read the entire contract carefully, including the reverse side, before signing it. Ask questions about any part of the contract that you do not understand. Accept the fact that the other party has no obligation to tell you how to get terms that are more favorable to you.
• Do not sign a contract that has any blank spaces – either cross them out or fill them in. If there are parts of the contract which you do not agree to, cross them out; if parts you verbally agreed to are missing, write them in.
• Finally, be certain to obtain a complete, accurate, signed copy of the contract and keep it in a secure place.

Note: This information was prepared as a public service by the Illinois State Bar Association and is a joint project with the Illinois Press Association. Its purpose is to inform citizens of their legal rights and obligations.