There may be penalties for failing to do certain things that the contract requires. These are often referred to as damages or liquidated damages in contracts.

They can be charged to you automatically. Make sure that you know when the supplier has the right to impose penalties, and for what obligations it can do so. Complying with those obligations is particularly important.

Be aware of issues that may not be explicitly covered in the contract but which may represent an additional risk or cost.

For example, failure to give the required notice prior to your contract end date may result in the contract being automatically renewed. If your contract contains such a clause, you may decide to give notice of termination immediately to avoid being locked in – you can always change your mind later on.