Legal contract review checklist

When do I use this document?

• as a template for the review of different types of contract provided during due diligence
• to help achieve a consistent approach to the contract review and reporting process
• to enable conclusions and recommendations from contract reviews to be presented in a common format

What are the key features?

• checklist to be completed by the reviewer of a legal contract
• introductory section, requiring completion of forms including:
  • name of reviewer
  • purpose of review
  • document name
  • key issues arising
  • recommended action(s)
• tabular checklist of contract terms to be reviewed and completed by the reviewer, including comments arising

What else do I need to know?

A legal contract review checklist will help achieve a consistent approach to the due diligence review and reporting process. The investor and its advisers may adapt a common document review checklist for use by the reviewers of documents.  The review results and any recommended actions can then be presented in a consistent manner.

Legal due diligence is likely to involve the review of a number of legal agreements or other legal documents relevant to the subject of the transaction.

For an investment transaction, the subject company will have entered into numerous contracts dealing with different topics and activities, including:

• purchase and sale of goods
• acquisition of assets
• provision of services
• leasing of property and equipment
• development/licensing of intellectual property
• loans and other finance
• employment contracts
• agreement with the company’s founders and shareholders