Legal Question in Business Law in California

That depends on the circumstances. You have not given us any information at all about the company, the contract, or the other party/parties to the contract. There is no way to guide you without that information.

Another point: Which option is best for your company is not a question about the law. Unless a contract contains illegal terms, whether to sign it is a business decision and not a legal one. Understanding the company's rights and duties under a particular contract can help you make that decision, but so can understanding a variety of other things unrelated to the law.