Contracts, partnership agreements, promissory notes, offering memorandums, are all part of doing business. You “paper” a deal. For the most part, legal documents can be boring, long, cumbersome and difficult to understand. But, understand them you must. Whether you are simply a minor player in a deal or the deal maker, it is critical you read and understand the documents that are part of any deal and obtain legal advice from an attorney.
Professionals are out there for a reason. Hire them. Always remember, however, that they are part of your team – not the other way around.
Don’t rely on your friends for critical decisions. Don’t sign a contract without understanding it. Have your representative (for example a Realtor) explain it to you. Read it so you understand it. Know the responsibilities of each party to the contract. It is your job to understand contracts and to lead your team. Don’t be afraid to send a broker or Realtor back to their office to make the changes you desire. These professionals are working for you!
If you are forming a partnership don’t use an operating agreement a friend gives you just because it’s free. Use it to become conversant with the language and the key elements and then, with your acquired knowledge, hire a lawyer to draft the document. He or she will undoubtedly use a boilerplate. With your knowledge you can lead the attorney to draft a document with the key elements you desire. This will also limit billable hours and reduce fees.
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I totally agree. You really should NOT sign a contract without even reading it. Always be aware of papers you sign and decisions you make.