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Are standardized angel contracts a good idea?
One of the strengths of individually negotiating contract terms is that a court will have little doubt that the bargain was fairly reached. However, in this situation, where you've got hungry entrepreneurs signing something that looks more like the kind agreement you'd sign at a car dealership and perhaps without a lawyer, it might raise some interesting flags
- gibsonf1 19y agoHmmm, in the Architecture (Building) world we've had standardized contracts for over a century. They work quite well at a cost of about $5 apiece. I can see how the author, being a lawyer, is concerned by the need of fewer lawyers with standardized contracts in the startup world.
- inklesspen 19y agoIANAL, but I believe he is referring to the downsides of a standard form contract. The courts have put some limitations on such contracts, because one side gets to dictate the terms, and the other side cannot negotiate; he can only sign it or go home. That said, I'm sure YC is going to make a fair contract. It's in their best interests for the startup to suceed, after all.