What is a Document Review?
A document review is the process of examining a document. It can be conducted for various reasons. These include if there’s important information to uncover during litigation or for due diligence before starting a working relationship.
A range of documents can be reviewed, such as compliance policies, contracts, and employee handbooks, to mention a few.
If you don’t get your document reviewed correctly, it can put you or your business at risk of penalties, financial losses, legal troubles, or disputes.
Read the rest of this article to learn about document reviews and when you should hire a lawyer to conduct a thorough, professional review.
Why are Documents Reviewed?
Documents can be reviewed for various reasons. These include:
- Preparing for a court case. Lawyers will review documents to build a case for their clients, such as when gathering documents for evidence.
- Reducing potential risks. Reviewing documents before signing them helps clients to avoid any risks that could cost them legally or financially. For example, there could be vague language in the document that results in misinterpretations or disputes.
- Ensuring legal compliance. Many documents are legally binding, so reviewing them ensures that all state and other laws are met to avoid violations.
What Types of Documents are Typically Reviewed?
Many documents can be reviewed. Some of the most common that get reviewed include the following:
- Wills
- Deeds
- Compliance policies
- Vendor contracts
- Settlement agreements
- Employment contracts
- Lease agreements
- Prenuptial/postnuptial agreements
- Real estate contracts
- Freelancing contracts
- Purchase agreements
Individuals, business owners, and lawyers can conduct document reviews to ensure clarity and legal soundness.
What Should You Look for During a Document Review?
Generally, there are common steps included in a document review to ensure that it’s thorough. These include the following:
- Do an initial readthrough. When you have the document in front of you, read through it quickly to note its structure. Spot sections in the document that are blank and look for any definitions that are lacking.
- Check all numbers. Look for all numbers in the document, such as in pricing terms, so that they are correct. For strings of numbers, it can be helpful to read the numbers back to front when checking them to spot any inaccuracies.
- Create a list of key terms and issues. You want to focus on specific key terms, such as work scope, IP protection, liability, and contract termination. See if anything is missing or problematic.
- Do a deeper review. Study every clause in the document. You want to check that all cross-references, numbers, dates, names, and facts in the document are correct.
- Group similar terms. When reviewing a document, you should group terms that are similar, such as “work scope” and “roles and responsibilities” to ensure that they are aligned. This ensures consistency throughout the document.
- Check it against a previous version. If there’s a previous version of the document, such as a compliance policy, you should compare both versions to ensure that the current one is properly updated.
- Look for red flags. Anything that poses a risk should be noted, such as general words like “unlimited” or “scope changes” that don’t detail the specifics.
- Check parties’ signatures. You should also confirm that their names, initials, and notary details (if required) are included.
What are Common Challenges of Conducting a Document Review?
If you’re conducting a document review, you might encounter specific issues or challenges. These include the following:
- Overwhelming document volume. If you’re dealing with many documents, such as estate planning documents, you might feel overwhelmed when reviewing all of them.
- Lack of legal knowledge. If you don’t have a strong legal background, you might feel out of your depth when reviewing technical or complex documents. Some documents might be drafted with lots of legal jargon, which can make understanding the terms challenging.
- Taking risks with high-value contracts. A high-value contract contains significant financial interests. If the documents aren’t properly and legally reviewed, this could result in huge risks.
- Ignoring negotiability. A common mistake when reviewing documents is assuming that they’re set in stone and can’t be negotiated. Often, they can be negotiated for more favourable outcomes.
Should You Hire a Lawyer for a Legal Document Review?
Although you can review simple, short documents on your own, it’s advisable to hire a lawyer for assistance with longer, more complex, and important documents to ensure a thorough examination. Here’s how a lawyer will be able to help you.
- A lawyer will guarantee that the document is legally sound. If your document ends up in court, you want to be sure that it’s legally valid and can be enforced.
- They will notice red flags you might miss. They will check for any vague, ambiguous, or jargon-filled language that could put you at risk.
- They will ensure clarity. All documents need to be clear so that parties involved find them easy to understand. During a professional review, your lawyer will clean up the document so that there’s no room for confusion or misunderstandings.
- They’ll prevent future issues. By reviewing a document thoroughly, a lawyer will help you minimize your future risks by identifying any loopholes, gaps, or other issues. This can also help you to prevent disputes.
- They’ll negotiate terms. A lawyer is skilled at knowing what can be negotiated in a document so that you prioritize your interests and achieve a favorable outcome.
Do you need to hire a lawyer for a document review?
If you want to have a document legally reviewed, you should connect with a lawyer from ContractsCounsel, an online legal marketplace that connects clients with lawyers who have been vetted on the platform. Here is how to get a review from a lawyer.
- Go to the ContractsCounsel marketplace.
- Post a project - it’s free.
- Include details about what you need so that lawyers know what to expect.
- Once you post your project, lawyers will send you multiple bids.
- You can review the lawyers before choosing one to work with, based on factors such as their client reviews, years of experience, credentials, and similar projects they’ve completed on the ContractsCounsel platform.
