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"Most people don't read the fine print until it's too late." This warning from Take It To The Board host, Donna DiMaggio-Berger sets the stage for a crucial conversation with guest and Becker shareholder James Robert Caves about common contract mistakes threatening community associations across Florida.

Drawing on decades of experience drafting, negotiating, and untangling problematic contracts, Donna and Rob reveal why the distinction between proposals and contracts matters, and how seemingly innocent "boilerplate" language can become a community's worst nightmare. The discussion exposes how vendors strategically include provisions that protect their interests while limiting their liability – often capping damages at the contract amount regardless of the severity of potential future harm.

Among the most dangerous contract provisions are those related to termination rights. Rob strongly advises against agreements that automatically renew and can only be terminated for cause, creating what he calls an "endless loop" where associations remain trapped in unsatisfactory and even dangerous relationships. 

Their conversation tackles particularly problematic contract types – telecommunications agreements with decade-long terms, elevator maintenance contracts with right of first refusal clauses, and the emerging trend of non-competition provisions appearing in landscaping and pool maintenance agreements. Through real-world examples, including a $2,500 maintenance contract that resulted in $100,000 damage, Donna and Rob demonstrate why contract review priorities should be based on risk assessment rather than contract value. 

Providing practical negotiation strategies while identifying must-have provisions you need inserted into your contracts, this episode delivers essential knowledge for board members and managers who want to protect their communities from costly contractual disasters.

Conversation Highlights: 

• How boards can ensure the proper legal entity is signing a contract—and why that’s critical
• The difference between apparent authority and actual authority when directors or managers sign agreements
• Key clauses every vendor or service contract should include
• Termination clause traps and what to watch for
• Common red flags that pop up in community association contracts
• The enforceability of non-compete and non-solicitation clauses in vendor agreements
• What makes a contract “illusory” and how to avoid them
• A practical rule of thumb for deciding which contracts require attorney review—beyond just the dollar amount

Related Links:

• Article: Association Contracts
• Online Class: Condo/Co-op Board Certification Class
• Podcast: Mastering Construction Contracts: Essential Insights with Steve Lesser