To Sign or Not To Sign?

[Häsecat]

My husband had a verbal contract with a friend/business partner for a company (a company that is still in the idea/planning stage that is not registered or even a real company yet).The understanding was that if anyone decides to leave, they don't get anything.

So after a decade of time and work on my husband's side, he decides it's time to move on to something else as this was not working out for him. Partly was because his friend/business partner seemed unfocused and was always changing his direction and ideas which caused a lot of time wasted.

Soon after telling his friend/business partner that he wanted to leave, his friend/business partner was not happy and now he wants my husband to sign a contract. He even consulted a lawyer for this.

But why now? Why only when my husband wants to leave does he suddenly want him to sign something in black and white? Everything was verbal from the start to when my husband was a part of it and now when my husband wants to leave, he suddenly wants my husband to sign the contract and is even pushing my husband to sign it asap.

I get that it's just business and he's trying to be cautious for the sake of his 'future company', but I feel that he's being ridiculous. Also, he has shown signs of being an untrustworthy person.

I don't think my husband should sign anything as it is unnecessary seeing that it isn't even a real company yet. Moreover everything had been verbal all this time and frankly, I don't trust his friend/business partner.

My husband, however, is thinking of signing it. I think it's for the sake of his friendship with his business partner and also to just move on.

My other advice to my husband is that if he really wants to sign it, he should include in the contract that he will be paid for his work if the company takes off (makes money) and if his friend/business partner uses his ideas/work. I think that's only fair as my husband was quite a big part of this.

Any advice/suggestions are appreciated. Thanks.

 

[Zigner]

My husband had a verbal contract with a friend/business partner for a company (a company that is still in the idea/planning stage that is not registered or even a real company yet).The understanding was that if anyone decides to leave, they don't get anything.

So after a decade of time and work on my husband's side, he decides it's time to move on to something else as this was not working out for him. Partly was because his friend/business partner seemed unfocused and was always changing his direction and ideas which caused a lot of time wasted.

Soon after telling his friend/business partner that he wanted to leave, his friend/business partner was not happy and now he wants my husband to sign a contract. He even consulted a lawyer for this.

But why now? Why only when my husband wants to leave does he suddenly want him to sign something in black and white? Everything was verbal from the start to when my husband was a part of it and now when my husband wants to leave, he suddenly wants my husband to sign the contract and is even pushing my husband to sign it asap.

I get that it's just business and he's trying to be cautious for the sake of his 'future company', but I feel that he's being ridiculous. Also, he has shown signs of being an untrustworthy person.

I don't think my husband should sign anything as it is unnecessary seeing that it isn't even a real company yet. Moreover everything had been verbal all this time and frankly, I don't trust his friend/business partner.

My husband, however, is thinking of signing it. I think it's for the sake of his friendship with his business partner and also to just move on.

My other advice to my husband is that if he really wants to sign it, he should include in the contract that he will be paid for his work if the company takes off (makes money) and if his friend/business partner uses his ideas/work. I think that's only fair as my husband was quite a big part of this.

Any advice/suggestions are appreciated. Thanks.

Your question really goes beyond the scope of this (or any) internet forum. We have not (nor will we) review any contract that may have been drawn up. Your husband should consult with an attorney of his own choosing.

 

[PayrollHRGuy]

Other than remaining friends there is no reason to sign anything and there are lots of reason not to. Enumerating those reason is impossible without knowing that the document says. But I can't believe the agreement helps your husband in any way.

 

[Zigner]

Other than remaining friends there is no reason to sign anything and there are lots of reason not to. Enumerating those reason is impossible without knowing that the document says. But I can't believe the agreement helps your husband in any way.

Said without even seeing the document that hubby is being asked to sign.

 

[PayrollHRGuy]

Yes it was. But I'll bet you a donut that if we ever hear about the contents of the agreement they will not favor the OPs husband.

 

[LdiJ]

Yes it was. But I'll bet you a donut that if we ever hear about the contents of the agreement they will not favor the OPs husband.

I agree...

 

[HRZ]

WEll if and when the other guy prepares something...make it crystal clear he brings it home UNsigned ...and it gets put in closet for a decade after which point the two of you will review if there is any need to take it to a lawyer.

 

[Taxing Matters]

Yes it was. But I'll bet you a donut that if we ever hear about the contents of the agreement they will not favor the OPs husband.

No way to know. And it may well be that there could be a benefit to him in signing it. The exact language of the document and the details of this budding business would matter. For example, if it is document that simply memoralizes the terms of their split on this deal, that may indeed be worthwhile. If presented with something to sign, the best thing to do is take it to a business law attorney ask what to do. Might save lots of headaches with this partner later down the road.

 

[HRZ]

True ...best answer is to have hubby's business lawyer review it BEFORE hubby signs a darn thing .