Know Your Rights: That Document You Are Signing May Put You in Trouble
Read properly before you sign — especially when you are standing as a guarantor for someone.
Many people sign documents every day without taking to understand what they are agreeing to. Some simply sign because a friend, relative, colleague or business associate asked them to.
But a signature is not just a formality.
In many situations, your signature can create legal obligations that may affect your money, property, reputation or other interests.
Before you sign, READ.
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Do not sign a document because someone tells you:
“It is just a formality.”
“Nothing will happen to you.”
“Everybody has signed it.”
“You are only helping a friend.”
“The document is not really important.”
Take your time and read every page.
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If you do not understand a clause, ask questions before signing. If necessary, seek independent legal advice.
Be especially careful when you are a guarantor
When you guarantee someone for a loan, employment, tenancy, business transaction or other obligation, do not assume that you have no responsibility simply because you are not the principal borrower or beneficiary.
Nigerian courts have recognised that a guarantor may become liable when the principal debtor defaults, subject to the actual terms of the guarantee.
In a recent 2026 decision, the National Industrial Court stated that a guarantor may be called upon to pay where the principal debtor fails to pay, while also emphasising that the guarantor’s liability is determined by the terms of the guarantee.
So before signing, ask:
What exactly am I guaranteeing?
How much could I be liable for?
Does my liability cover interest, penalties, legal costs or other charges?
How long will the guarantee remain in force?
What happens if the person I am guaranteeing defaults?
Can the agreement be changed without my consent?
These are not questions to ask after a problem has started. Ask them before you sign.
What does Nigerian law say?
Nigerian courts have repeatedly treated contractual documents seriously.
In JFS Investments Ltd v Bawal Line Ltd (2010) 18 NWLR (Pt. 1225) 495, as cited in a 2026 National Industrial Court judgment, the principle was reaffirmed that parties who voluntarily enter into a contract are generally bound by its terms. The court also stressed that contractual terms should be read as they are rather than having unrelated terms added to them.
There is also specific Nigerian case law on guarantees. In Chami v UBA Plc (2010) 6 NWLR (Pt. 1191) 474, the principle cited by the National Industrial Court is that a guarantee involves a written undertaking by one person to be responsible if another person fails to perform an obligation.
In addition, the Evidence Act 2011 contains provisions dealing with signatures and documents in legal proceedings. For example, the Act recognises evidence relating to whether a document was signed by the person it purports to have been signed by.
The lesson is simple:
Do not put your signature on a document you have not read or understood.
Never sign a blank document
Avoid signing documents containing blank spaces that can later be filled in without your knowledge.
Also be careful with documents you have not been allowed to read properly. Do not allow anyone to rush you into signing simply because they claim it is urgent.
Keep your copy
After signing, ask for a complete copy of the document and keep it safely. If there are supporting documents, terms and conditions or schedules attached to the agreement, make sure you have access to those too.
Your copy may become important if there is a disagreement later.
Your signature matters
Before putting your signature on any document, pause and ask yourself:
“If something goes wrong, what responsibility could this signature create for me?”
A few minutes spent reading and asking questions can save you from serious legal or financial problems later.
Know your rights. Know your obligations. Read before you sign.
This article is for general public education and does not constitute legal advice. The legal effect of a document depends on its wording, the circumstances and applicable Nigerian law. Where you are unsure about an important agreement or guarantee, consider obtaining advice from a qualified legal practitioner.
Headlineswave encourages readers to verify important legal information and consult a qualified legal practitioner before signing documents that may create significant financial or legal obligations.
