looking for a friends and family convertible loan doc

Posted by Rob Morris on April 30, 2009 under Miscellaneous | Be the First to Comment

Just extending on William’s warning – boilerplate legal
documents are Very Convenient™ and great if you need a cheap legal
document to tick a box for some cosmetic, unimportant reason; but usually Not
So Great At All™
if it ever comes to actually disputing them. Which
is kind of the point of a legal document in the first place. Boilerplates as a
rule are horrible in any situation where the outcome of any dispute is
important or critical to you. If it’s critical, the cost of getting the
agreement drafted by a competent lawyer is 200% worth it. Remember that the best
contract is one that keeps you out of court in the first place. That is best achieved
by ensuring all parties are clear on what is being agreed and providing an
effective non-legal dispute resolution mechanism.

 

If you’re not willing to work with a lawyer, the big question is
– why do you really need a legal document? If you don’t need it don’t use it,
because it will be harder to understand and probably won’t save your neck if it
ever goes to court (often leaving you worse off than if you had no legal
document). We once used a boilerplate contract and later when we had our lawyer
look over it, were advised that it was only enforceable by the other party – the
worst possible scenario. (We promptly amended the contract!) The most important
things about a contract is establishing intent and obligations, and a clear
mechanism for dispute resolution. If you’re not willing to work with a lawyer,
you’re probably better off with a clear non-legal document that everyone
understands – e.g. Keep It Simple and Sweet (for all parties). If everyone’s
happy, there’s no dispute!

 

When it comes to equity or partnerships, my emphatic (but
non-legally-qualified) advice is Work With A Lawyer (else, be clear that you’re
relying upon goodwill – and go out of your way to preserve it).

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src="cid:image002.jpg@01C9C9BB.264B0D90" alt="Silicon-Spider-Logo_Small.jpg">

Rob Morris
Managing Director

 

+44 20 3287 9297

siliconspider.com

 

 

 

From: [address removed]
[mailto:[address removed]] On Behalf Of William Robins
Sent: Thursday, 30 April 2009 4:17 PM
To: [address removed]
Subject: RE: [entrepreneur-1056] Re: looking for a friends and family
convertible loan doc

 

style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#1F497D'>Sophie

style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#1F497D'> 

style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#1F497D'>Netlawman.com
are quite helpful.  However you have to be legal savvy to know how to use
them.  Just one thing to watch out for guys using them is that their
documents might not be binding.

style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#1F497D'> 

style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#1F497D'>Here is
the small print from their website:

Health
warning:
Our terms and conditions state clearly that we are not
liable for any issue arising out of our advice.  We insist on that because
we cannot control what you tell us and we have no opportunity to take full
instructions.

style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#1F497D'> 

style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#1F497D'> 

lang=EN-US style='font-size:10.0pt;font-family:"Arial","sans-serif";color:black'>Best
wishes,

lang=EN-US style='font-size:10.0pt;font-family:"Arial","sans-serif";color:black'> 

lang=EN-US style='font-size:10.0pt;font-family:"Arial","sans-serif";color:black'>William
Robins

lang=EN-US style='font-size:10.0pt;font-family:"Arial","sans-serif";color:black'>Partner

lang=EN-US style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#4D4D4D'> 

lang=EN-US style='font-size:10.0pt;font-family:"Arial","sans-serif";color:#595959'> 

lang=EN-US style='font-size:9.0pt;font-family:"Arial","sans-serif";color:#C0D832'>dd: lang=EN-US style='font-size:9.0pt;font-family:"Arial","sans-serif";color:#4D4D4D'> 
020 7152 6550

lang=EN-US style='font-size:9.0pt;font-family:"Arial","sans-serif";color:#C0D832'>m:  
07720 836 636

lang=EN-US style='font-size:9.0pt;font-family:"Arial","sans-serif";color:#C0D832'>f:     
0845 458 9398

lang=EN-US style='font-size:9.0pt;font-family:"Arial","sans-serif";color:#C0D832'>e:    
[address removed]

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style='font-size:8.0pt;font-family:"Arial","sans-serif";color:#4D4D4D'> border=0 width=612 height=50 id="Picture_x0020_2"
src="cid:image003.jpg@01C9C9BB.264B0D90" alt="KEYSTONE LAW">

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lang=EN-US style='font-size:9.0pt;font-family:"Arial","sans-serif";color:#4D4D4D'>53
Davies Street, London W1K 5JH  |  lang=EN-US style='font-size:9.0pt;font-family:"Arial","sans-serif";color:#4D4D4D'>
t: 020 7152 6550 style='font-size:9.0pt;font-family:"Arial","sans-serif";color:#D2D2D2'> |  lang=EN-US style='font-size:9.0pt;font-family:"Arial","sans-serif";color:#4D4D4D'>
f: 0845 458 9398 style='font-size:9.0pt;font-family:"Arial","sans-serif";color:#D2D2D2'> |  lang=EN-US style='font-size:9.0pt;font-family:"Arial","sans-serif";color:#4D4D4D'>
w: title="http://www.keystone.co.uk/">www.keystonelaw.co.uk

style='font-size:7.5pt;font-family:"Calibri","sans-serif";color:#7C7C7C'>Keystone
Law is a trading name of Keystone Law Limited, a limited company registered in
England and Wales (registered number: 4650763). The firm is regulated by the
Solicitors Regulation Authority.

style='font-size:7.5pt;font-family:"Calibri","sans-serif";color:#7C7C7C'>A list
of the members of Keystone Law and of the non-members, who are designated as
partners, is open to inspection at the registered office being Matrix Studios,
91 Peterborough Road, London SW6 3BU. The term partner is used to refer to a
member of Keystone Law or an employee or consultant with equivalent standing
and qualifications. The members are either solicitors or registered foreign
lawyers. VAT registration number: GB 809 6078 09.

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lang=EN-US style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'>From: lang=EN-US style='font-size:10.0pt;font-family:"Tahoma","sans-serif"'>
[address removed] [mailto:[address removed]] On Behalf
Of
Sophie Garrett
Sent: 30 April 2009 09:47
To: [address removed]
Subject: [entrepreneur-1056] Re: looking for a friends and family
convertible loan doc

 

style='font-size:10.0pt;font-family:"Arial","sans-serif"'>I’d look for a
template contract.  I use Net Lawman www.netlawman.com

style='font-size:10.0pt;font-family:"Arial","sans-serif"'> 

style='font-size:10.0pt;font-family:"Arial","sans-serif"'>Kind regards

style='font-size:11.0pt;font-family:"Arial","sans-serif"'> 

style='font-size:10.0pt;font-family:"Arial","sans-serif"'>Sophie Garrett

style='font-size:10.0pt;font-family:"Arial","sans-serif"'>0208 133 1234 or
07766 134533

style='font-size:10.0pt;font-family:"Arial","sans-serif"'>skype:
sophie.garrett, twitter: yours2share

style='font-size:11.0pt;font-family:"Arial","sans-serif"'> href="http://www.yours2share.com">www.yours2share.com style='font-size:10.0pt'> - sign up for our href="http://visitor.constantcontact.com/email.jsp?m=1101771729276&p=oi">newsletter
- look at our blog -
read about us in the href="http://www.yours2share.com/images/DailyMail081107.pdf">Daily Mail and
href="http://www.yours2share.com/press/Boat-sharing-Mallorca-Fairline-Targa.pdf">Motor
Boat & Yachting

style='font-size:10.0pt;font-family:"Arial","sans-serif"'>share valuable assets
with like-minded people

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Road, Ruislip Manor, Middlesex HA4 9BH

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