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Is there some reason a proper contract couldn't have prevented this in the beginning? If you sold off 10% to investors, then it's your fault, is it not, that y

• hga 16y ago
  While I too would be interested in more details, there are certain types of people who if you let them get a toe hold in your company can effectively preclude future success. E.g.: They may be investing in tranches and you need future ones to launch. If you have a bad/impossible relationship with them, future or alternative investors will steer clear. They may be sufficiently nasty and wealthy that if you're successful, they'll sue you, or are at least making a credible threat to do so. It doesn't matter if you'd win if you don't have enough money to fight it. The contract may have specified certain milestones, which they then prevent you from hitting. Anyway, by and large contracts won't really protect you in a situation that gets ugly, their major purpose is to memorialize an agreement so that "but you said..." friction doesn't arise after an agreement has been made. Imagine how you might try to word a clause that starts with "In case of bad faith...", starting with the definition of that.