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Contract review

Contract review caught $80K hidden penalty

Pre-signing review caught a buried 25% pre-payment penalty clause. Negotiated removal before signing.

Recovered

$80K

Duration

1 months

Outcome

Pre-litigation win

The challenge

What the client was facing.

Client was about to sign a $320,000 USD pre-construction contract for a Playa del Carmen condo. The Spanish version (which is the binding text in Mexico) included a clause not in the English version: a 25% penalty if the buyer accelerated payments — a provision designed to lock in the developer's financing structure and punish faster-than-scheduled equity contributions.

Our approach

The strategy we deployed.

Side-by-side review revealed the discrepancy. We drafted a red-line eliminating the clause and added explicit language guaranteeing buyer's right to accelerate without penalty.

The result

How it ended.

Developer accepted the red-line. Client retained the right to accelerate payments and avoided $80,000 USD in potential penalty exposure that they had no idea existed.

Facing something similar?

Your situation deserves the same rigor.

Every case is different, but the methodology holds: strategic pressure, credible escalation, recovery.

Contract review caught $80K hidden penalty — PeninsuLawyers