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What is wrong with this contract?

The traps in this lease, job or service contract, in plain words.

Every trap we look for

Serious — Blank spaces left to fill later: Anything left blank can be filled in after you sign, without you. Ask for: every blank to be filled in or crossed out before signing.
Check this — It renews by itself: The contract continues automatically unless you cancel in time — easy to miss. Ask for: a reminder before renewal, or no automatic renewal.
Check this — A long notice period: You must warn them long in advance to leave or cancel — miss the date and you're locked in again. Ask for: a shorter notice period (30 days is common).
Check this — A minimum period: You're committed for a set time; leaving earlier can cost money. Ask for: a shorter minimum term, or a clear, low exit cost.
Serious — A fee to leave early: Leaving before the end can cost a fee or all the remaining payments. Ask for: a capped exit fee, or none after a reasonable period.
Serious — They can change the terms: They can change the contract or the price on their own, while you stay bound. Ask for: changes only with your written agreement, or the right to leave for free if they change anything.
Check this — Price rises at their discretion: The price can go up at any time, by any amount. Ask for: a fixed price, or rises limited to inflation with advance notice.
Serious — Penalties or high late fees: Small delays can become expensive quickly. Ask for: a reasonable, capped late fee.
Serious — You give up your rights: You agree in advance not to claim against them. Ask for: this clause to be removed.
Serious — They're not responsible for anything: If something goes wrong because of them, you may have no one to claim from. Ask for: liability for their own fault and negligence.
Check this — You cover their costs: You agree to pay their losses or legal costs if a claim arises — even large ones. Ask for: this limited to losses you actually caused.
Check this — Private arbitration instead of a court: Disputes go to a private arbitrator, often costly, and you may lose the right to join a group action. Ask for: the right to use the ordinary courts or small claims.
Check this — Disputes only in a chosen court: You may have to take any dispute to a court far from where you live. Ask for: disputes heard where you live.
Serious — A personal guarantee: You — or whoever guarantees — can be made to pay the whole debt personally. Ask for: no personal guarantee, or one limited to a set amount and time.
Serious — Non-refundable money: Money you pay may never come back, even if they don't deliver. Ask for: refunds if the service or item isn't provided.
Check this — They can end it at any time: They can stop the contract whenever they like, while you're bound by it. Ask for: the same notice and conditions for both sides.
Worth knowing — They can pass the contract to someone else: You could end up dealing with a company you didn't choose (a debt collector, a new owner). Ask for: your consent before any transfer.
Check this — Your data shared or sold: Your personal information can go to other companies. Ask for: no sharing beyond what's needed, and a way to say no.
Worth knowing — Only what's written counts: Any promise made to you out loud or by message doesn't count unless it's in the contract. Ask for: every promise that matters to you written into it.
Serious — A non-refundable deposit: A deposit is meant to come back; calling it non-refundable turns it into a fee. Ask for: a refundable deposit, returned minus only proven damage.
Check this — Repairs pushed onto you: You may pay for repairs that are normally the landlord's job — roof, plumbing, appliances. Ask for: you pay only for damage you cause.
Serious — The landlord can enter at any time: They can come in without warning. Ask for: entry only with notice (24 hours is common), except emergencies.
Serious — Eviction without notice: You could be put out almost immediately. Ask for: the notice periods the law gives tenants.
Check this — Limits on guests: Having friends or family stay could break the contract. Ask for: reasonable guest rules.
Check this — Extra fees on top of the rent: Key money, agency, admin or cleaning fees add up — and some aren't allowed in some places. Ask for: a written list of every fee, and which are refundable.
Serious — A non-compete: After you leave, you may be barred from working in your field or for competitors. Ask for: no non-compete, or one short (a few months), local and paid.
Serious — Unpaid overtime: Extra hours may bring no extra pay. Ask for: overtime paid, or a clear limit on hours.
Serious — Pay can be withheld or deducted: Your salary can be cut or held back, for example for training costs. Ask for: deductions only as the law allows and you agree in writing each time.
Check this — They own what you create — even outside work: Your own side projects could belong to them. Ask for: ownership limited to work done for them, in working time.
Serious — Dismissal without notice: You could lose your job overnight. Ask for: the notice (or pay instead) the law requires.
Check this — A long probation period: For a long time you can be dismissed easily. Ask for: a shorter probation (often 3 months).
Check this — No other work allowed: You can't take a second job or freelance work. Ask for: other work allowed if it doesn't compete.
Serious — They keep your passport: Holding a worker's passport is a sign of forced labour — and illegal in many countries. Ask for: your passport stays with you, always.
Serious — A recruitment or placement fee: Workers are often charged fees they shouldn't pay — sometimes a sign of trafficking. Ask for: no fee charged to you.
Check this — Payment in 60 days or more: You wait a long time to be paid for work already done. Ask for: payment within 14 or 30 days, with late-payment interest.
Check this — Unlimited revisions: They can ask for changes forever without paying more. Ask for: a set number of revision rounds, then paid changes.
Check this — Paid only if they're satisfied: They can refuse to pay by saying they're not happy. Ask for: clear acceptance criteria and a deadline to raise issues.
Check this — The interest rate can change: Your repayments can go up during the loan. Ask for: a fixed rate, or a cap on how high it can go.
Check this — Fees on top of the interest: Processing, service or insurance fees raise the real cost of the loan. Ask for: the total cost of the loan in one figure (the APR or effective rate).
Serious — Something you own is at stake: If you don't pay, they can take the property or item pledged. Ask for: exactly what's at stake, and the steps before they can take it.
Serious — The whole loan can become due at once: One late payment can make everything payable immediately. Ask for: a grace period and notice before that can happen.
Serious — Interest per day or per week: A daily or weekly rate becomes huge over a year — often a sign of a predatory lender. Ask for: the yearly rate, in writing — and compare with a bank.
Check this — A large final payment: Small payments now, then one big sum at the end. Ask for: equal payments, or a clear plan for the final sum.
Serious — Your wages, cheques or ATM card as security: The lender can take pay straight from your salary or cash cheques — holding your ATM card is a common abuse. Ask for: none of these; keep your ATM card and cheques yourself.

Ask before you sign

Can I take a copy home and read it before signing?
What exactly happens if I want to leave early — and what does it cost?
Are all the promises you made to me written in here?
What's included in the rent, and what else will I pay each month?
How and when is the deposit returned?
What are the working hours, and how is overtime paid?
What notice do we each give to end this?
How do I cancel, and when does it renew?
Can the price change during the contract?
When exactly do I get paid, and what if you're late?
How many rounds of changes are included?
What's the total I'll repay, with every fee, in one number?
What happens if I pay late or pay it all back early?

11What is wrong with this contract?

What is wrong with this contract?