Should I sign this contract

Signing a contract is not something that should be taken lightly. After all, it creates a legal obligation to fulfill your end of the deal—and if you fail to do so, there could be consequences. If you regret signing one, the process of getting out of it can also be complicated. But don’t worry: to help you, we’ve gathered some things you should consider if you’re unsure whether to sign a contract.

Does a contract need to be in writing?

Not always. Verbal agreements are enough to create a binding contract in many cases, as long as it has all the elements of a contract:

• One side made an offer, and the other side accepted it.
• Both parties had the legal ability to make a contract.
• They both intended to create a binding contract and negotiated in good faith.
• They are exchanging something of value, like money or services, also known as “consideration.”

However, if one side of a verbal agreement claims there was a breach of contract, they will have to prove that all of the above elements were present. This is much easier with a signed document.

Keep in mind that some types of contracts do have to be in writing under the law. These include contracts for the sale of real estate, agreements that last over a year, and contracts where one party takes on another person’s debt. If a legal document requires a notary’s signature (such as deeds or affidavits), it must also be in writing.

When is an e-signature acceptable?

Many businesses now use electronic signatures (e-signatures), like our RocketSign®, instead of ink signatures. If you're signing electronically, make sure:

• You receive a copy of the contract. 
• You have time to review it before signing. 
• The document is stored securely.

If you sign a contract, is it legally binding?

Yes, a contract is legally binding if it meets all legal requirements. 

However, some contracts are unenforceable in certain situations. For example, this can happen when one of the parties is a minor or lacks the legal ability to sign, when the contract involves something illegal, when the terms are extremely one-sided and unreasonable, or when fulfilling the contract is no longer possible (think of the sale of a house that was suddenly destroyed by a storm).

What should you consider before signing a contract?

A contract might look simple at first glance, but small details can cause big problems later. Carefully review these key areas:

✅ Expectations and responsibilities

• Do you clearly understand your obligations?
• Are the terms specific and unambiguous?
• Are timelines and deadlines clearly defined?

🔄 Changes and amendments

• Does the contract explain how changes can be made?
• Is there a process for making modifications if needed?

⚠️ Risky clauses to watch out for

Some contract clauses might seem harmless, but can have serious consequences:

CLAUSE	WHAT IT MEANS	WHY IT MATTERS
Termination clause	Explains when and how the contract can end	You may want the option to exit under certain conditions
Arbitration clause	Requires disputes to be settled outside of court	You might give up your right to sue if things go wrong
Non-compete clause	Restricts where you can work after leaving a job	Could limit your future career opportunities

If you spot any of these clauses, make sure you fully understand their impact before signing.

When deciding whether to sign a contract, it’s important to get into the fine print and review all of the contract terms. Consider what could go wrong after you’ve signed the contract and how those terms might affect you. While spotting these clauses on your own can be tedious, Rocket Copilot Contract Review can point them out and explain their potential impact in plain language, helping you make a more informed decision before signing. You may also want to get help from a Legal Pro.

When should you NOT sign a contract?

If any of the following apply, pause before signing and seek legal advice:

❌ The contract has blank spaces that could be filled in later.
❌ You feel pressured or rushed into signing.
❌ You don’t fully understand the terms and need clarification.

It's always better to take your time than to sign something you might regret later.

 

Key takeaways Many contracts do not need to be in writing, but a written contract is easier to enforce. You should carefully review the terms of a contract before signing. You can always seek legal advice if you don’t understand a contract.