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> We didn’t sign any type of contract at all Pardon my naivety but, couldn't you just consider them out of the company? Write them off the website, stop inviti

by linkdd 5y ago

> We didn’t sign any type of contract at all Pardon my naivety but, couldn't you just consider them out of the company? Write them off the website, stop inviting them to meetings, revoke their access/credentials/... There is no contract, so what can they do legally?

owyn 5y ago
They might "get mad" but so what? Do you think (insert your favorite famously cut-throat and successful entrepreneur) cares about that? I certainly wouldn't offer them MORE of a stake in the business out of some sense of guilt. You have no contract now, so don't offer them an actually real contract with shares, or you'll never get rid of them. A cash offer for "work for hire" done so far, even that seems generous at this point. It sounds like they're mostly disengaged anyway. It might be a good idea to formally "fire" them just as insurance. It might also be a good idea to get the equivalent of a restraining order against an angry ex. Some paperwork that says they will not make any such claims to ownership in the future. But if there is no signed contract, no issued stock, there's nothing to make a claim on. And it sounds like they're too lazy to sue you anyway. :) Even if you don't formally "write them off" you need to mentally cut them off and move on. It's not worth the emotional effort. Good luck with your business!
elliekelly 5y ago
Just because there was no formal written contract signed by all parties does not mean there was no contract.
- rurban 5y ago
  True. But Zake didn't fulfill his contractual obligations, so the contract is void. You already warned him, so he is out.
  - Chyzwar 5y ago
    But Zake, can still create expensive and time-consuming lawsuit depends on jurisdiction. He can also create PR/Reputation problems that could be hard to mitigate. The right approach would be a combination of law in your country and your knowledge of Zake character. I would recommend consulting with a startup lawyer and maybe try to find a win-win situation for both of you where he can exit with face, and you can afford it.

by linkdd 5y ago

owyn 5y ago

They might "get mad" but so what? Do you think (insert your favorite famously cut-throat and successful entrepreneur) cares about that? I certainly wouldn't offer them MORE of a stake in the business out of some sense of guilt. You have no contract now, so don't offer them an actually real contract with shares, or you'll never get rid of them. A cash offer for "work for hire" done so far, even that seems generous at this point. It sounds like they're mostly disengaged anyway. It might be a good idea to formally "fire" them just as insurance. It might also be a good idea to get the equivalent of a restraining order against an angry ex. Some paperwork that says they will not make any such claims to ownership in the future. But if there is no signed contract, no issued stock, there's nothing to make a claim on. And it sounds like they're too lazy to sue you anyway. :) Even if you don't formally "write them off" you need to mentally cut them off and move on. It's not worth the emotional effort. Good luck with your business!

elliekelly 5y ago

Just because there was no formal written contract signed by all parties does not mean there was no contract.

rurban 5y ago
True. But Zake didn't fulfill his contractual obligations, so the contract is void. You already warned him, so he is out.
- Chyzwar 5y ago
  But Zake, can still create expensive and time-consuming lawsuit depends on jurisdiction. He can also create PR/Reputation problems that could be hard to mitigate. The right approach would be a combination of law in your country and your knowledge of Zake character. I would recommend consulting with a startup lawyer and maybe try to find a win-win situation for both of you where he can exit with face, and you can afford it.