Without a Sign
Don't get roped into a deal before you know it.
Think a deal ain't a deal until everyone signs on the dotted
line? This is not only wrong; it's a dangerous misconception. A
handshake or an oral agreement are obvious exceptions. But did you
know that an exchange of letters or a simple promise can legally
bind you?
The problem in a nutshell: In that inevitable windstorm of
communication that accompanies most deals, you never know when a
judge or jury will say you've crossed the line from courtship
to commitment. There is no neat litmus test. Even if you never
signed, courts will look at everything: whether anyone is acting
like they have a deal, whether one would expect the parties to wait
until more comprehensive papers (as opposed to short deal letters)
are signed, whether they've issued press releases or thrown
parties, and so on.
So if you don't want to get roped into a deal prematurely,
say so--loudly, clearly and in writing. Don't perform
your side of the bargain, and don't let anyone act as if the
deal's made. But proceed carefully when executing this advice,
or you may chill your negotiations.
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A speaker and attorney in Los Angeles, Marc Diener is author
of Deal Power.