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All contracts (including Term Sheets for early financing) are simply a manifestation of the parties' expectations. At the end of the day, relationships are mor
by sunchild 15y ago
All contracts (including Term Sheets for early financing) are simply a manifestation of the parties' expectations. At the end of the day, relationships are more important. How often are these term sheets enforced anyway?
- blacksmythe 15y ago>> How often are these term sheets enforced anyway? Virtually every time. Nothing is ever going to turn out better for the founder than what you see on the term sheet. The term sheet is handed to the lawyers as a template for the contract. The odds of the contract being more beneficial to the founder than the term sheet is infinitesimal. The odds of there being clauses in the contract making it less beneficial to the founder than the term sheet is significant.
- sunchild 15y agoOK, but by "enforce", I meant "is the basis of a valid, colorable claim in court that ultimately prevails". IMO, that's the best measure of the paper's value/importance.