What to Look for Before You Sign a Business Contract

Contracts are the backbone of any business relationship.

Whether you're hiring a supplier, entering a partnership, or signing a lease, the fine print matters. A strong contract sets clear expectations, protects your interests, and helps things run smoothly. A weak one?

That’s where risk, confusion, and unexpected costs can creep in. We often see businesses run into trouble not because they didn’t have a contract, but because the contract wasn’t clear, balanced, or fit for purpose.

6 things to consider before you sign:

1. Clarity is key

Vague terms like “reasonable effort” or “as soon as practicable” might sound harmless, but they leave too much room for interpretation. If it’s not clear, it’s open to dispute! Make sure your contract spells out exactly what’s expected: who’s doing what, when, and how. The more precise the language, the less chance of misunderstanding down the track.

2. Know your way out

Every contract should include a clear exit strategy. Without proper termination clauses, you could find yourself stuck in an arrangement that no longer works for your business. Look for details around notice periods, early termination rights, and what happens if things go wrong.

3. Watch for hidden liabilities

Some contracts include indemnities, unlimited liability, or personal guarantees that can expose you to more risk than you realise. These clauses can have serious financial consequences, especially if something goes wrong. Before you sign, make sure you understand what you’re actually agreeing to, and what you could be held responsible for.

4. Be clear on IP and confidentiality

If your business is creating content, designs, software, or other intellectual property, make sure the contract spells out who owns what. Confidentiality, protecting your trade secrets, client data, and other sensitive information is essential. This is especially important under the Privacy Act 2020, which sets clear rules around how personal information is collected, stored, and shared.

5. Understand the legal landscape

In New Zealand, certain laws apply whether they’re mentioned in the contract or not. For example, the Consumer Guarantees Act 1993 and Fair Trading Act 1986 may still protect your customers, even if your contract says otherwise. If you’re contracting with individuals or providing goods and services to the public, it’s worth checking how these laws apply.

Also, make sure your contract specifies that New Zealand law governs the agreement and that any disputes will be resolved locally. If the other party is overseas, this helps avoid confusion and costly jurisdictional issues.

6. Don’t forget force majeure

If events beyond your control, like natural disasters (which New Zealand has had a fair few of recently) or pandemics, could impact your ability to deliver, make sure your contract includes a force majeure clause. These aren’t automatically implied, so they need to be written in.

Practical tips for Business Contracts

Always get contracts reviewed before signing.
Don’t be afraid to negotiate—it's easier (and cheaper) than fixing problems later.
If something matters to your business, make sure it’s written down.

A Final Thought

Strong contracts don’t just protect your business; they give you peace of mind. They help you build better relationships, avoid surprises, and stay focused on what you do best. If you’re unsure about a contract or want help reviewing one, our team is here to make the process simple and straightforward.

At Willis Legal, we’re always ready to listen, ready to explain, and ready to help!

"Custody" isn't actually a legal word in NZ anymore - here's what we say instead

20 September 2026

He taonga to mokopuna, kia whāngaia, kia tipu, kia rea - a child is a treasure, to be nurtured, to grow, to flourish. A common thing we hear from clients is "I want custody of my children." While most people understand what "custody" means, the reality is that custody is no longer a legal term used in New Zealand family law. In fact, the term was removed from our legislation more than 20 years ago. So, what changed? The Care of Children Act 2004 replaced the old concepts of "custody" and "access" with language that focuses more directly on children's needs and parental responsibilities. Instead of talking about custody, the Family Court now talks about: Day-to-day care (who the child lives with and who looks after them on a daily basis); and Contact (the time a child spends with a parent or other important person when they are not in that person's care). The change was intentional. The law moved away from language that can sound like a child is something to be "owned" or "won" by one parent. What does "day-to-day care" mean? Day-to-day care refers to the practical care of a child, including: Where the child lives; Their daily routine; School attendance; Meals, bedtime, and general supervision; and The everyday decisions involved in raising them. A parent can have: Sole day-to-day care; or Shared day-to-day care arrangements. There is no legal presumption that one parent should have day-to-day care over the other. The Court's focus is always on what is in the child's welfare and best interests. What about "contact"? What many people previously called "access" is now referred to as contact . Contact can take many forms, including: Weekend visits; School holiday time; Telephone calls; Video calls; Supervised contact; or Other arrangements that allow a child to maintain a relationship with an important person. The Court recognises that children generally benefit from having ongoing relationships with both parents, provided doing so is safe and in their best interests. Does this mean I can't say "custody"? Not at all. Many people still use terms like "custody," "shared custody," and "access" in everyday conversation, and most lawyers will understand exactly what you mean. However, if you're involved in Family Court proceedings, you'll hear terms such as: Day-to-day care Contact Guardianship Parenting orders These are the legal concepts that will appear in Court documents and orders. Why does the language matter? The shift away from "custody" reflects a broader change in how New Zealand family law views parenting after separation. Rather than focusing on which parent "gets" the child, the law focuses on: The child's welfare and best interests; Maintaining important relationships; Encouraging parents to work together where possible; and Ensuring children are protected from harm. Ultimately, Family Court decisions are not about determining a "winner" and a "loser." They are about creating arrangements that best support the child's wellbeing. As family lawyers , we offer advice, guidance and representation in family law matters, if you would like assistance or to talk to someone, contact us today. Written by: Eva Leutele

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