• February 2019
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If a cofounder is just getting equity now can you make a contractual expectation that they will work full time if we get into an accelerator or VC?

Author Charles Stross once wrote “contract law is essentially a defensive scorched-earth battleground where the constant question is, “if my business partner was possessed by a brain-eating monster from beyond spacetime tomorrow, what is the worst thing they could do to me?” That being said, the freedom of contract affords people the unrestricted ability to structure legally binding agreements with other parties without the government getting in the way. Seems great right?

The problem with the seemingly unregulated realm of contract law is that the effects of a bad / invalid / unenforceable agreement will not appear for months or years down the road. That’s why it’s imperative for the contract to be ironclad from the start. To achieve this, both sides need to be receiving some sort of benefit. It appears, given the limited info from you, that you could draft a contract that would hit the points needed to make it a valid agreement. It’s easier said than done though.

Feel free to stop by LawTrades to have a skilled startup attorney draft or review this type of agreement for you. Our legal platform exists in order to provide bootstrapped startups with an alternative to the risky DIY websites and the overpriced traditional law firm experience. Don’t hesitate to message me with any further questions as well!

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