Guide · Updated 2026-10-19 · By The PayOrScam team
Contract red flags: what to check before you sign or pay
Many scams and costly disputes start with a signature. The FTC has described sales agents who used fine print, half-truths and blank documents to get small business owners to sign, and a case in which a payment processor failed to disclose that its "cancel any time" contract was a three-year agreement with a $495 early termination fee and automatic yearly renewal. Use these checks before you sign anything or pay a deposit.
Red flags in how the contract is offered
Pressure to sign today, or a "special price" that disappears if you take time to read.
Being asked to sign blank or incomplete pages. The FTC says don't do it.
No copy right away. If the other side won't give you the full document, or promises to "send it later", the FTC says that could be a sign you're dealing with a scammer.
Verbal promises that aren't in the text ("you can cancel whenever you like").
Red flags in the contract itself
Check who you're contracting with. The legal name and company number should match the official register exactly, and the company should be active. A different entity, or a trading name with no company behind it, is a warning.
Read the term, renewal and cancellation clauses. Look for automatic renewal, long minimum terms and early termination fees.
Check the payment terms. Large upfront payments, deposits to a personal account, or demands to pay by wire transfer, gift card or cryptocurrency are red flags; the FTC says a demand to pay that way is a scam.
Look for one-sided terms: the other side can change prices or terms at will, or you waive every right to dispute.
Make sure what you're buying is described precisely: deliverables, dates and what happens if they're missed.
Check the bank details on the contract or first invoice against the company's country and confirm them by phone.
Search the company with "scam" or "complaint" and ask other business owners, as the FTC advises.
If the amount matters, get independent advice before you sign.
Upload the contract to PayOrScam to check the company on official registers, the website and email domain, the bank details and the document itself (edits, hidden layers, pasted signatures), with sources. It doesn't give legal advice, so for anything significant ask a lawyer.