A contract can be perfectly valid and still be completely out of step with the business using it. The agreement signed when your company had ten employees may not make much sense now that you have 100. The vendor contract negotiated before AI became part of your workflow may say nothing about how company data is handled. And that customer agreement from three years ago may contain a change-of-control clause that suddenly matters a great deal if you plan to sell the business.

In 2026, businesses have plenty of reasons to stop treating old contracts like permanent fixtures. Here are seven agreements worth reviewing before yesterday's assumptions become tomorrow's problems.

1. Customer and Client Agreements

Customer contracts deserve particular attention because they govern the relationships responsible for generating revenue.

As a business grows, its services, pricing, delivery models, customer expectations, and risk profile can change substantially. Yet the underlying agreement may remain untouched.

A business contract lawyer in Los Angeles can help businesses review whether their customer agreements still accurately address:

· Pricing and payment terms

· Scope of services

· Renewal and termination rights

· Service-level obligations

· Liability limitations

· Indemnification

· Confidentiality

· Intellectual property

· Data handling

· Change-of-control provisions

That last provision can be especially important if the company is considering an acquisition, investment, or restructuring.

For example, a customer may have negotiated a right to terminate if ownership changes. A provision that seemed unimportant when the contract was signed could become a serious transaction issue years later.

The question is not simply, "Is this contract enforceable?"

It is also, "Does this contract still make sense for the business we are actually running?"

2. Vendor and Supplier Agreements

Businesses tend to scrutinize customer contracts closely because customers bring in revenue. Vendor agreements, meanwhile, can quietly become just as important to operations.

A software provider, manufacturer, logistics company, consultant, or other vendor may become indispensable over time. If the agreement does not adequately address that relationship, the business could be exposed when something goes wrong.

Review:

· Pricing and price-increase provisions

· Automatic renewals

· Service levels

· Security obligations

· Confidentiality

· Subcontracting

· Insurance requirements

· Indemnification

· Termination rights

· Data return and deletion

Consider a company that relies on one vendor for a core operational system. If the vendor can change pricing, discontinue the service, or terminate the relationship with limited notice, the contract may leave the business with considerably less leverage than its management realizes.

The more important the vendor becomes, the more important the contract becomes.

3. Employment and Independent Contractor Agreements

A growing company often changes its workforce faster than its legal paperwork.

Job responsibilities evolve. Employees move into management. Contractors take on more substantial work. Remote arrangements become standard. Compensation structures change.

Those changes should prompt a review of the agreements governing the relationship.

Businesses should examine provisions covering:

· Compensation

· Duties and responsibilities

· Confidentiality

· Intellectual property

· Company property

· Termination

· Contractor classification

· Remote-work arrangements

California businesses have another reason to pay attention. California law broadly restricts employment noncompete provisions, subject to statutory exceptions.

California also enacted additional restrictions effective January 1, 2026 concerning certain employment-related contractual terms that impose financial penalties or repayment obligations tied to ending a work relationship.

That makes an old employment template worth more than a casual glance.

A contract written for a different legal environment can become a liability rather than a safeguard.

4. Technology, SaaS, and AI Agreements

Some of the most important business contracts are not between the company and an outside party. They are between the owners themselves.

A company's ownership structure can change dramatically after formation. New investors may arrive. One founder may leave. Another may take on a larger role. The company's value may increase from thousands to millions of dollars.

The agreement should keep up.

A shareholder agreement attorney in LA can help businesses review provisions concerning:

· Voting rights

· Management authority

· Transfer restrictions

· Buyouts

· Valuation

· Deadlock

· Distributions

· Death or disability

· Owner departures

· Dispute resolution

These provisions may sit quietly for years. Then two owners disagree about a major decision and suddenly discover that the document governing their relationship is missing a practical solution.

Nobody wants to discover the emergency exit was never installed while the building is already on fire.

7. Intellectual Property and Licensing Agreements

For technology companies and other businesses whose value depends heavily on intellectual property, licensing and ownership agreements deserve regular attention.

Businesses should confirm:

· Who owns the underlying IP

· Whether licenses remain appropriate

· Whether permitted uses have changed

· Whether sublicensing is allowed

· Whether geographic restrictions still make sense

· Whether royalty provisions remain appropriate

· What happens when the agreement ends

· Who owns improvements or derivative work

This is especially important when independent contractors or outside developers created important company assets.

AI also raises new questions around ownership, permitted use, confidentiality, and data practices. If a business relies on third-party tools to create or process valuable material, it should understand what those tools permit before that material becomes commercially important.

What Should You Look for Across Every Contract?

A business does not need to rewrite every agreement simply because the calendar says 2026.

Instead, look for provisions that could become problematic as the company grows.

Automatic Renewals: Could the business become locked into another term without meaningful notice?

Termination Rights: Can either party walk away? How much notice is required?

Assignment: Can the agreement be transferred during a sale, restructuring, or internal reorganization?

Indemnification: Is the business assuming risks that another party should reasonably bear?

Liability Caps: Does the limitation still reflect the financial importance of the relationship?

Confidentiality: Does the provision cover the kinds of information the company actually handles today?

Change of Control: Could a financing, acquisition, or ownership change trigger consent requirements or termination?

When Should a Business Review Its Contracts?

An annual review is useful, but the calendar should not be the only trigger.

Contracts deserve attention when something meaningful changes in the business, including:

· Launching a new product or service

· Entering a new market

· Adopting new technology

· Taking on major customers or vendors

· Expanding geographically

· Raising capital

· Adding investors

· Changing ownership

· Preparing for an acquisition

· Responding to new regulatory requirements

The best time to discover that a contract no longer fits is before the business needs that contract to work.

Your Business Changed, Did Your Contracts?

A contract should reflect the business as it exists today, not the business that signed it three years ago.

At Alex Nahai Law, we help businesses identify outdated provisions, address emerging risks, and strengthen agreements as their operations evolve. Our corporate attorneys in Los Angeles provide practical guidance for businesses that want their contracts to support growth rather than quietly interfere with it.

If your business has changed significantly since your agreements were signed, now is a good time to review them. Contact our corporate law firm in Los Angeles to discuss your contracts and schedule a confidential consultation.