Please select Menu Source


The act of signing and executing a contract is a pivotal moment in any business transaction. It signifies more than the mere exchange of promises; it is the crystallization of a mutual understanding, a binding agreement that delineates the rights, responsibilities, and regulations for all parties involved.

A contract is more than just a piece of paper; it’s an agreement between people. It tells the rights, duties and rules for both sides in it. It is very important to know how this process works, especially in our busy business world today. 

This guide aims to provide straightforward and practical advice on the steps necessary to ensure that contracts are signed and executed correctly. From the initial drafting to the final handshake, we’ll cover the importance of clear language, the verification of signatory authority, and the adherence to statutory requirements. We’ll also explore the common pitfalls to avoid, such as ambiguous terms or incomplete agreements

Need Help?

Got an issue you want to talk to a legal professional about? Get a free consultation.

*Free consultation is limited to 15 minute phone call for us to give preliminary advice


Before starting to sign a contract, it’s very important to understand the basic parts that make up a legal promise. A contract is not just a piece of paper but promises and duties that can be enforced by law. Learning these parts can help you avoid possible legal problems and make sure the deal you’re joining is good and fair.
  • Offer and Acceptance: A contract must involve a clear offer from one party and an acceptance by another. This mutual consent is the foundation of any contractual agreement.
  • Consideration: This refers to the value that is exchanged between the parties involved. It could be services, money, or an agreement to perform certain actions.
  • Capacity: The parties involved must have the legal capacity to enter into a contract. They thus have to be of sound mind and legal age.

  • Intent: There must be an intention by the parties to create a legally binding agreement.
  • Legality: The contract’s terms and purposes must adhere to the law. Any contract formed for illegal activities is invalid.
  • Possibility of Performance: TThe terms of the contract must be achievable; contracts promising impossible tasks are not valid.
  • Clear Terms: The contract should clearly state all the terms and conditions. Ambiguity in contracts can lead to disputes and legal issues.


It is important to never sign a contract carelessly. This is a commitment that may pay off in the long run. Therefore, understanding what you are agreeing to and ensuring that the contract corresponds with your interests and expectations is crucial.
  • Read Carefully: Before signing a contract, ensure that you have read all of the fine print. It’s crucial to understand every clause and term you are agreeing to.
  • Seek Clarification: If any part of the contract is unclear, ask for clarification. Never sign a document with parts you do not understand.
  • Negotiate Terms: If you don’t like some parts of a deal, keep in mind that agreements can be talked about. Talk and agree on conditions that are good for everyone involved.
  • Consider the Future: Think about how the contract’s terms will affect your future actions and obligations. Ensure that you are comfortable with these long-term implications.
  • Legal Advice: For complex contracts, or if you have doubts, seek legal advice. You may better understand the repercussions and legal jargon through the guidance of a lawyer.


Signing and doing a contract is the last thing you do to make an agreement official. This part needs careful focus on details to make sure the agreement is legal and works as planned.

  • Ensure All Parties are Present: All parties involved in the contract must be present during the signing, either physically or represented legally.
  • Use Your Legal Name: Sign using your legal name as it appears in official documents. This leaves no room for disputes about the contract’s validity.
  • Date the Contract: The contract should be dated to establish when the agreement was entered into.
  • Witnesses: Having a witness or notary public can add an extra layer of authenticity to the contract.
  • Maintain Copies: For their records, each party should keep a copy of the signed agreement.
  • Follow-up: After the contract is signed, ensure that all parties fulfil their obligations as stated.


The proper way to sign a contract involves using your legal name, ensuring all parties are present, dating the document, and ideally having it witnessed or notarized. It’s important that the signature reflects the name mentioned in the contract to avoid any legal discrepancies.
Executing a contract involves more than just signing it. It includes understanding its terms, ensuring all parties agree to the terms, signing, dating, and often witnessing the document. Post-signing, the execution involves adhering to and fulfilling the terms as agreed upon in the contract.

Correcting a signed agreement typically requires creating an amendment or a new contract. The amendment should clearly outline the changes and be signed by all original parties. Legal advice is recommended to ensure the amendment doesn’t inadvertently affect other contract terms.

Our Latest Blogs

Clear Filters

How Much Does It Cost to Sue a Company in Sydney

Suing a company in Sydney involves various costs, from legal representation fees to court filing expenses.

What happens if you break a commercial lease

Navigating the legalities of breaking a commercial lease can be complex. A Commercial Lease lawyer or legal advisor can help you understand your rights and obligations.

What is Commercial Law and Its Roles?

Commercial law provides several avenues for dispute resolution, including mediation, conciliation, negotiation, and arbitration.

What Are the Key Terms of a Distribution Agreement?

The Distribution Agreement is fundamental in establishing and nurturing a beneficial business relationship between suppliers and distributors.


Our Happy Clients

Patrick Chiu
Patrick Chiu
I am incredibly grateful for the outstanding service provided during my recent property purchase. From the initial consultation to the final closing, the team's professionalism and expertise were exceptional.
Macy Li
Macy Li
Tina at CMI Legal is very professional and technical. Great service. Highly recommend to everyone!
Michael Glenn
Michael Glenn
Rita and John settled the matter expeditiously and according to my instructions. I appreciate their clear communication diligence!
Jeena J
Jeena J
Tina has been an absolute gem in assisting us with our journey to find our first home. As newcomers to the property market, the myriad of processes and legal documents left us feeling overwhelmed. However, Tina's unwavering support and guidance made it a breeze for us. Her meticulous attention to detail proved invaluable in identifying potential risks and swiftly addressing them on our behalf. We wholeheartedly recommend her services, particularly if you're seeking someone you can place your utmost trust in. She is a true professional who goes above and beyond to ensure a seamless experience.
Recently, because of selling a house, I got to know Ms. Tina from this law firm through a friend's introduction. A very cute and beautiful girl who can speak English Mandarin and Cantonese fluently. In the whole process of selling a house, the business is quite professional and skilled, explaining the clauses in the contract that the customer does not understand, and actively avoiding the unfavorable treaties for the customer. So the whole transaction went very smoothly, and all the house payments have been received today. Thanks to this beautiful lawyer in this law firm.
Diana Farrera
Diana Farrera
We've dealt with many solicitors for our company and definitely CMI provides a really good service and looks after the clients effectively. Thank you to Rita & team.
Gwen Lau
Gwen Lau
I have been a client of Tina Tang solicitor CMI Legal Pty Ltd I can recommend her to do her job 110% her attention to detail informing clients of legal jargon in contracts simplifying the language is phenomenal. Tina replies to phone calls, texts, emails immediately her professionalism is outstanding, in her respect tone of voice and getting the job done with all the relevant documents to protect you as a client. Her protection of you as a client arming you with information in the legal world is something i never ever found in other solicitors I engaged over the years. I can recommend her legal services to anyone and if you decide to hire her you can only benefit
Ray Vella
Ray Vella
I needed legal advice on Copyright issues and spoke to John in CMI Legal. I found John to be very patient and genuinely wanted to help. He took an interest in my concerns and was very clear and thorough with his explanations of the legal aspects. He also went the extra mile to research any grey areas and promptly got back to us to confirm his findings. I am very grateful for the help from John and as a result of our consultation I have learnt the general rules of intellectual property copyright issues. I would not hesitate to seek John’s help if needed in the future and would highly recommend CMI Legal’s services to others.

Explore Our Comprehensive Legal Services

Got an issue you want to chat to a Legal Professional?

*Free consultation is limited to 15 minute phone call for us to give preliminary advice