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Why Contracts Don’t Protect You In Business

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SUMMARY

  • You don’t have the money to defend yourself in court
  • Or as Peter Thiel said a single digit millionaire can’t defend himself in America
  • Grant Cardone’s lawsuit cost him 200k per month
  • It’s why most people settle – and that still costs an arm and a leg
  • Contracts only protect you when you’re rich
  • In fact when you’re rich enough, the contract doesn’t even matter
  • When you’re rich you can extract what you want contract or no contract
  • Unless you’re rich you’re f#$ked, just like many other areas in life
  • You’re best bet is to charge your losses to the game or maybe try to settle and get a piece back
  • But even better is protecting yourself as much as you can by:
  1. Go into business for yourself (partners are dangerous)
  2. If you partner, partner with a close, capable, trustworthy friend (otherwise strangers and enemies)
  3. Get paid upfront, don’t build a business where you have to chase clients downto pay you at the end the month and assume a contract will protect you
  4. Outsource your work to reputable companies with cash as opposed to individual
  5. Be ethical – limits the chance of you being involved in anything legal


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