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Agreement between Independent Investor and Investee

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stormcaller

Junior Member
This question takes place in Pennsylvania.

What problems or concerns are there in the following contract between an investor and an unincorporated investment startup?


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Investee-Investor Contract​

A. The investor agrees to give the Investee an initial pre-established sum of money in USD, for which the Investee agrees to give the Investor 40% of the profit generated from said investment, each time the sum is invested with the remaining profit going to the Investee and his associates.

B. The Investee agrees to invest the sum of money and send monthly to bi-monthly reports to the Investor with the relevant information listing the amount invested and the profit being generated from said investment.

C. The Investor has the right to invest in the Investee for a minimum of two weeks with the profits being reported by to the Investor from the date of the money being invested by the Investee from thereon.

D. The Investor has the right to request his/her profit once they receive their current report. If the investor does not request their profit upon receiving their report, then the said profit will be re-invested along with the current investment.

E. If the Investor requests that their profit and/or investment be sent to them, the the Investee agrees to do so in a timely fashion limited by the circumstances of the said funds.

F. If the Investor successfully refers another Investor, then the Investee agrees to five the referring investor 5% of the Investee's profit generated from the referred investor for one year from the initial investment from the referred Investor.

G. The Investor agrees that the Investee and the Investee's associates are not held liable for loss of funds nor are they held liable for any action related to said investment.

H. The Investor agrees to forfeit his/her right to sue to the Investee and the Investee's associates for loss of funds or for any other reason.

I. Anything that was not exclusively written into this document may be interpreted by the originator of this document, the Investee, to guarantee quick resolution of questions and for the alleviation of any necessary circumstances.

J. By signing this document, both parties agree to abide by the aforementioned rules. This document may not change in writing except through a re-negotiation mediated by the current signing parties through which a confirmation of the re-negotiated terms will be made legal by a joint signing of the amended document with both parties present along with the witness of a notary.



Investor: ___________________________________ Date: _________________




Investee: ___________________________________ Date: _________________



***

Thoughts? Thanks.
 


quincy

Senior Member
Your request (a contract review) is beyond the scope of this forum.
The problems and concerns in this particular contract are such that no one would enter into it as is, if they understood what it said. :)

The Pennsylvania Bar exam is on July 29, July 30, which gives stormcaller a little time to figure out the (many) flaws in the contract.
 

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