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Wednesday, June 24, 2009 12:31 PM

ALDERMAN: Read contracts carefully before signing

By JASON ALDERMAN, Practical Money Matters

When people hear the word “contract,” some start daydreaming about signing a multimillion dollar deal with the NFL while others recall how their knees shook the day they signed that first car loan. If you think about it, though, many of our day-to-day decisions involve contracts.

Broadly defined, contracts are mutually binding agreements between two or more parties to do — or not do — something. It could be as simple as buying coffee (you agree to pay $2.50 and the restaurant agrees to serve you a drinkable beverage); or as complex as signing a mortgage to which you’ll be tied financially for the next 30 years.

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