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It's really not[1]. The most important thing is to know who's sitting on the other side of the table. As a lawyer I've been asked to negotiate dozens of these c
by ballenf 9y ago
It's really not[1]. The most important thing is to know who's sitting on the other side of the table. As a lawyer I've been asked to negotiate dozens of these contracts. And been sued on exactly one.
The irony? The one sued on was one the tightest and my client was 100% in the right. But the other guy was an asshole and we hoped the airtight contract would protect us.
We settled and paid him a non-trivial sum.
Have seen it repeatedly in situations short of lawsuits where the two sides are of markedly different sizes. The smaller party can negotiate whatever they want and then the big party will still proceed to do what they want and as long as there is still more business going on (sue them and lose the rest of the work).
[1] Of course there are exceptions: the most important of them is stipulations that will actually cost you money. That is, the business terms. Then there are terms that can cost you reputation and non-compete clauses that make you lose other work. There are terms you want to watch out for, but my experience discussed above is that it's not the contract that gets you sued, it's the asshole on the other side that you decided to do business with.
- john_moscow 9y agoOut of curiosity, what made you settle given the contract in your favor?
- jrochkind1 9y agoI'm not the one who you are asking, but I've seen it happen so I know the answer -- because even when you're sure the contract is in your favor, it's going to cost you a heck of a lot of money to litigate, and you _might_ still lose even more money. Cut your losses (and write em off on your taxes), get back to business. And think about how you can be better at picking clients next time.
- ballenf 9y agoNailed it. You can never predict an outcome, unless you're willing to spend a load of money on appeals. You rarely (in the US) can collect attorneys fees even if you prevail. The non-trivial amount we paid out was a little less than winning would have cost.
- gsylvie 9y agoWould you have represented your client for the litigation? (Or would your firm have?) I'm just curious to understand how your own incentives don't point you towards court. Are you in-house counsel? Are you a small shop with no litigation department?