A signed contract is a legal document that binds you to the terms and conditions it contains, regardless of whether or not you have read it or agree with it. It is important that consumers ensure they not only read, but also understand contracts before signing them.

By signing a contract when they do not fully understand its implications, consumers can put themselves at serious risk.

35,000 complaints are received each year by Fair Trading NSW and quite a number of those relate directly to contractual disputes that arise due to a person either failing to read, or not understanding, the terms and conditions of the contract, and what they had agreed to on signing.

Individuals and business owners who have any doubt regarding contracts that they are about to sign should seek professional legal advice, especially where large and complex contracts are involved.

Some important tips for consumers to remember when signing a contract include:

• Ensure that you know exactly what you are signing for
• Take the time to carefully consider the contract
• Do not allow yourself to be stood over or rushed into signing anything
• Be wary of people who will not let you take the contract away to read and tell you not to worry about the fine print
• If you do not agree with a particular clause take action to have it removed or amended
• Always keep a copy of everything that you sign