As a lawyer that is asked to help clients for breach of contract cases, I felt it important to point out how critical it is for a person to read before he or she signs.
A recent unpublished opinion by the Tennessee Court of Appeals reminded me of an important principal of contract law: “An individual who signs a contract is presumed to have read the contract and is bound by its contents.” 84 Lumber Co. v. Smith, 356 S.W.3d 380, 383 (Tenn. 2011). The Court went further to note that an individual’s signature “without limiting or descriptive words before or after it, is the universal method of signing a contract to assume a personal obligation.” Lazaro v. Klyce, 255 S.W.2d 11, 13 (Tenn. 1953). In the case at hand, when a person admitted singing guaranty agreements, the Court found that the signatory was bound by the terms of the agreements.
This is not to say there are not defenses to a signed agreement: public policy arguments, fraud, and the like. But the simple fact remains true – read before you sign. If you disagree with the terms, or have questions about the terms, hiring an attorney to help with contractual review and explanation is an important step. Our firm is available to help with either contract review/drafting/negotiation or contract litigation. At the least, consider marking through or writing notes on the contract itself. You may be required to find another business venture in which to associate if the terms are too one-sided.
If you are in need of a lawyer to help with a Tennessee contract dispute, please contact me at (901) 527-2125 or E-mail Me.