1. Unclear or Vague Terms
A contract should clearly outline the “who,” “what,” “when,” and “how much.” Vague phrases like “as agreed later,” “best efforts,” or “subject to availability” are open to interpretation — and disputes.
Tip: Ensure every responsibility, deadline, and amount is spelled out. If something’s not clear, don’t assume — ask.
2. One-Sided Obligations
Beware of contracts that heavily favour one party — especially if only one side has rights to cancel, impose penalties, or change terms.
This is common in:
- Landlord/tenant agreements
- Vendor contracts
- Employment agreements
Tip: Fairness matters. A balanced contract protects both parties — not just one.
3. Missing Dispute Resolution Clause
If something goes wrong, how will you resolve it? Is it through mediation, arbitration, or the courts?
Many contracts in Kenya either ignore this or default to expensive litigation — when faster, cheaper methods could work better.
Tip: Ask for a clause that defines how disputes will be handled, and where. Consider arbitration for commercial matters.
4. Unrealistic or Hidden Penalties
A contract that penalizes you for every delay, but gives the other party full freedom, is a trap. Watch for:
- High interest rates
- Unreasonable cancellation fees
- Automatic renewal clauses
Tip: Penalties must be proportional and clearly explained. If you spot fine print — read it twice.
5. No Exit Strategy
Can you terminate the agreement if things go wrong? If so, how? Many people are shocked to find they’re stuck in long-term contracts with no way out.
Tip: Always clarify the conditions for ending a contract — and get it in writing.
Why It Matters
Signing a poorly drafted contract can affect your finances, business, and even your personal freedom. Contracts are not just formalities — they’re enforceable legal documents.
Need Help Reviewing a Contract?
At KLP Advocates LLP, we help individuals and businesses across Kenya review, draft, and negotiate contracts that hold up legally — and work for you practically.
Contact us today to schedule a contract review or consultation.
