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> Catch is that if you invoke that the other party can switch it around and demand that you accept that pay for your share. I'm kinda curious how the low-level
by dwohnitmok 5y ago
> Catch is that if you invoke that the other party can switch it around and demand that you accept that pay for your share.
I'm kinda curious how the low-level details of that work out. Do you have some sort of 3rd-party service which temporarily holds one founder's offer and gives the other founder N days to make a decision? Or is there some other mechanism to prevent the founder initiating a buy out from backing out ("no you see, I wasn't actually serious about buying you out!").
- KarlKemp 5y agoThe mechanism is triggered by one founder making a clear statement, usually in writing, that they want to trigger it. From that moment on, they are bound to it.
- hvidgaard 5y agoApart from invoking it in writing, I think such manoeuvres go through a lawyer, which a court will usually accept them as stating the truth about when an offer was send and received. I'm also sure the clause have some text about how long the other founder has to answer and how long they have to come up with the money if they decide to switch it around.