5 Things to Know Before Signing a Contract in Costa Rica

1. Understand the language: Contracts are usually written in Spanish. Ensure you fully understand the terms or hire a certified translator to avoid misunderstandings.
2. Verify the legitimacy of the parties: Always verify the identities of the people or entities involved in the contract by checking their legal documentation and business registration.
3. Check for arbitration or mediation clauses: Many contracts in Costa Rica include clauses for dispute resolution. Understand if arbitration or mediation is preferred over court proceedings.
4. Be aware of penalty clauses: Contracts may include penalties for late delivery, non-performance, or other breaches. Ensure you’re aware of these clauses to avoid financial or legal risks.
5. Always consult a lawyer: Don’t sign a contract without first consulting a Costa Rican attorney familiar with the relevant laws. They can help identify any hidden risks or ambiguities.