Oral Contracts Can Be a Costly Mistake for Your Business
In a recent webinar, I shared a case study from a former client that highlights the dangers of relying on oral contracts. In this situation, a business operated for 10 years with a contractor based solely on an oral agreement. When the company hit a rough patch, the contractor left, taking intellectual property with them. Fast forward 1.5 years, the business turned things around and started generating millions in revenue. That’s when the contractor came back, claiming they were a partner and entitled to equity.
What followed was a costly, heavily litigated "he said/she said" legal battle that settled on the eve of trial—costing the business substantial legal fees and a settlement payment. All of this could have been avoided with a properly drafted written contract from the beginning.
💡 Key takeaway: Don’t underestimate the power of a well-drafted written agreement. It can protect your business and save you from unnecessary legal headaches down the line.
Check out the clip below from the webinar to hear more!
Videos and content are for educational purposes only, not to provide specific legal advice.Contact: msalehpour@salehpourlaw.com
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