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My reading may be off but it sounds like the investor may have made the first payment of many. If so, might not be so cut and dry.
by rboyd 7y ago
My reading may be off but it sounds like the investor may have made the first payment of many. If so, might not be so cut and dry.
- codingdave 7y agoTrue, but if the investor stopped fulfilling their side of contract, they cannot enforce anything beyond what was spelled out for the first payment. And a SAFE is, to my understanding, rights given to the investor for future funding rounds. So if there was no additional consideration needed to get that first payment... it really might be that cut and dry. But again, it depends on what the contract actually says, so... they should still ask a lawyer. Keep in mind that contracts, in general, aren't enforceable on their own to begin with. They are documentation of agreements that could be used to help decide conflicts in civil court, to get a court order that is enforceable. And they therefore often end up being leverage so conflicts don't go that far. So the only way OP has to fret over this is if they expect the investor may some day sue them for the investment rights, even after they stopped giving them investments.