In our continuing series of Insights & Opinions from readers and others in the community, we’ve been trying to add articles that might be useful to entrepreneurs and others. With that goal in mind, our anonymous contributor, “Uncle Saul” has just posted a lengthy and very informative article entitled Kiss of Death – Contract Provisions Entrepreneurs Should Avoid at All Costs. He goes into deep detail on some of the major points you ought to consider when drafting a legal agreement with a larger company.
As a startup, your most meaningful agreements will likely be struck with BDCs (Big Dumb Companies). You will no doubt craft agreements with companies of similar or even smaller size compared to your own, but the risk associated with such agreements will be tempered by the fact that you will negotiate such agreements as a relative peer. As such, your greatest risk and greatest opportunity will arise from the deals you cut with larger entities.