TL;DR: Founders start a company on trust, shared excitement, and an assumption that everyone sees the future the same way. That assumption is exactly what a founders’ agreement exists to protect against, not because you distrust your co-founders, but because trust alone has no mechanism for resolving a genuine disagreement once one arrives. This guide […]
Category Archives: Contracts & Agreements
03
Mar
Mar
TL;DR: When an investor or acquirer’s legal team runs due diligence, they aren’t just scanning for red flags, they are pricing risk into every clause that creates uncertainty, liability, or operational restriction. Five specific clause types account for a disproportionate share of the valuation haircuts, deal delays, and collapsed term sheets founders encounter: broken assignability, […]
24
Feb
Feb
You’ve nailed the pitch. The investor is nodding. Then come the five words every founder both wants and dreads to hear: “Send over your legal docs.” This is where many promising startups stumble, not because of a weak business idea, but because of poorly drafted, incomplete, or missing agreements. Investors and their legal teams are […]
24
Feb
Feb
TL;DR: Drag-along and tag-along rights solve two opposite problems in a company sale: drag-along lets a majority of shareholders force minority holders to join a sale so one holdout can’t block a genuinely good deal, while tag-along protects minority shareholders by letting them join a majority sale on the same terms, so they aren’t left […]
24
Feb
Feb
TL;DR: A shareholders’ agreement earns its value the day shareholders disagree, not the day it’s signed. The provisions that matter most in practice are the ones most founders skip in the excitement of starting a business: how decisions actually get made, what happens when two equal shareholders reach a genuine deadlock, who has first right […]
23
Feb
Feb
TL;DR: A SAFE and a convertible note both let an early-stage company raise money without setting a valuation today, but they are structurally different instruments. A SAFE is not debt: no interest, no maturity date, no repayment obligation. A convertible note is a debt instrument: it accrues interest and carries a maturity date that forces […]
24
Jan
Jan
Short answer: hire a contract lawyer before you sign, not after something goes wrong. For most individuals and small businesses, that means a flat-fee review or drafting engagement rather than a retainer. Expect to pay a flat fee for a standard agreement in India, more in the US, and materially more if the contract is […]
17
Jan
Jan
Overview Any Contract in Dubai and the UAE operate under a unique legal framework that blends civil law principles with Sharia law influences and free zone regulations. Whether you’re signing an employment contract, leasing commercial property, entering a partnership, or agreeing to a service contract, understanding what you’re committing to isn’t optional, it’s essential. In […]
16
Nov
Nov
TL;DR: Founders tend to focus on valuation, investment amount, and dilution percentage when reviewing a term sheet, but the clauses that actually determine your outcome are usually elsewhere: liquidation preferences, anti-dilution protection, board control, vesting resets, and drag-along thresholds. A term sheet with an impressive valuation and terms that destroy founder economics is a worse […]
16
Nov
Nov
TL;DR: A shareholders’ agreement and your company’s Articles of Association do different jobs, and confusing them is the single most common drafting mistake. The Articles are a public, statutory document filed with the Registrar of Companies, governed by the Companies Act, 2013, and legally binding on the company itself. A shareholders’ agreement is a private […]