Contracts avoid the horrorshow

[mark in tx]

Contracts, contracts, contracts.

Much like location is everything in Real Estate, Contracts are everything in business.

I took on production of another shop. I was to produce signage, they were to sell it. I was to take on equipment, they were to maintain a storefront.
I was becoming the backroom so to speak.

All on a handshake.

This could have been a great deal for me, and for them.

Long story short, I have possession of a broken printer, a pile of media odds and ends, a working vinyl cutter I don't need, basically everything from their shop taking up my space.
They have gone out of business entirely, which was a surprise to me, they owed me money, they want a sales commission on anything that might be sold to their former customers, they still owe money to the original owners of the business who are calling me about the equipment, they still owe money to their former landlord, and I am tired of dealing with the whole mess.

Contract, contract, contract.

Get a lawyer, make up a contract, and follow it to the letter.

Did I mention that contracts are important?

Luckily I didn't get burned too bad.
Should have had a contract.

 

[Accelerated Graphics]

what brand of plotter?? do you want to sell it?? I'm going to Austin/San Antonio to work tonight and tomorrow.. call me if you'd like to sell it..
817-991-0523

 

[TXFB.INS]

what would have contract done?

If they still owe money to several people what/how would the contact have saved you?
you are just another person in line of a line of people wanting payment.

you have the equipment and the customer list, seems like you came out ahead. Now you can sell retail price and make more.

What if any of the equipment are you selling

 

[Gino]

Weren't you broken into and robbed tonight ?? :Oops:​

 

[visual800]

in this situation whats a contract gonna do? nothing. They are broke, they are gone and your still screwed, the contract wont change that. Happens everyday in every facet of business. My advice, DO NOT go into a business venture with anyone. Be responsible for yourself only and not others. If other humans approach you with "a sure winner" tell them good luck doing it on their own!

 

[DizzyMarkus]

Sounds like the way you were treated, you would have taken it no matter.

Were they "friends" of yours? Having a hard time understanding why someone would do all that without something in writting. You had all the gamble and cash involved.

Markus

 

[WildWestDesigns]

Long story short, I have possession of a broken printer, a pile of media odds and ends, a working vinyl cutter I don't need, basically everything from their shop taking up my space.
They have gone out of business entirely, which was a surprise to me, they owed me money, they want a sales commission on anything that might be sold to their former customers, they still owe money to the original owners of the business who are calling me about the equipment, they still owe money to their former landlord, and I am tired of dealing with the whole mess.

It seems like most replies about what a contract is going to do are about recouping ones money from someone else.

Another facet that contracts are good for that is good in a situation like this is liability mitigation.

Now the former landlord is dubious in my mind without knowing more of the situation. But certainly the former business owners (and any other creditors) can not only go after the partner and/or the OP for the full amount and quite possibly win it and if they get it from the OP, then the OP will have to in turn go after the former partner for their part (which may be 50% or some offset) which as I suspect most that have posted on here so far wouldn't have given the OP much of a chance on accomplishing.

I personally wouldn't have gone into a partnership , but I surely wouldn't have gone into one that wasn't an LLP with everything spelled out and I would have made sure that the people that were doing business with the partnership also had in their contracts language that made sure that they knew that I wasn't the general partner.

Now all this does vary state to state, some require at least one general partner by law, some do not. But you have none of this protection without contracts spelling it out. That to me is the lesson of contracts avoiding this particular horror show. Or any horror show that involves partnerships. Contracts aren't just about how to have a legal avenue to recoup your money, but mitigating other people's ability to legally claim "damages" from you.

However, make sure that the language of the contracts is kosher. I've seen some contracts that had shall we say colorful language and it wouldn't hold up in this jurisdiction especially. So make sure that all the language that needs to be there is there and written how it needs to be written. Otherwise your chances aren't good, but don't blame the system for your not following the rules.