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Saw my LLC partner get raked over the coals in small claims court yesterday, changed how I think about handshake deals
I was sitting in the back of courtroom 3B in Austin watching my buddy try to collect $4,200 from a former contractor who never finished a job. My buddy had nothing in writing, just texts and a verbal promise. The judge gave him like 5 minutes to explain before ruling against him. That whole experience hit me hard because I've been running my side business the same way - all handshake agreements with suppliers and subcontractors. I immediately called my lawyer after and asked about simple contract templates for service work. Now I'm switching over to written agreements for anything over $500, even with people I've known for years. Has anyone else had a deal blow up because you trusted a handshake?
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evan54315m ago
Yeah same here, used to think contracts felt too formal. Now I get it.
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phoenixk6413h ago
Used to think contracts were for distrusting people but now I get it after seeing that.
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