It sounds obvious. However, as the economic downturn begins to show signs of a turn around, the frequency of Internet transactions are on the rise. The downturn has created some change in the market. Companies have become more efficient than ever. The market downturn has also restructured the workforce significantly and has, in some instances unwillingly, created thousands of new Internet entrepreneurs either seeking to supplement their income effected by lower raises or bonuses or in many instances replacing jobs that were eliminated as the result of layoffs and restructures.
Increased Complexity in Transactions
The world of Internet content development, marketing, traffic and lead generation is entering its adolescence and as a result deals in these areas are becoming more and more mature and complex. As a result of these changes, our office is seeing a larger than ever increase in the number of unrepresented companies on the opposite side of deals and transactions. This means that these unrepresented parties are being placed at a greater and greater disadvantage.
Read Every Word
We are constantly surprised at how many, thus far, very successful business owners are so willing to simply sign an agreement seemingly without spending the time to have it reviewed by an attorney with their best interests in mind or even apparently reading it themselves. Our advice this month hopefully serves as a reminder more than any earth-shaking new advice. That is that in any business transaction that you enter into, read what you sign carefully before you sign it and ask questions about anything that is not perfectly clear. Where possible, form a relationship with a qualified attorney familiar with the Internet and with your company so that you have efficient and immediate access to someone that can answer your questions and suggest alternatives on a moment’s notice.
Raise only Appropriate Issues
Just as dangerous to themselves is the unrepresented party that makes a far bigger deal out of a term in an agreement than is necessary. Almost as if these individuals feel that they cannot sign a document without making some sort of fuss to make them feel as though they have accomplished something, they argue a point that needs no arguing and wind up signing a document that includes a difference with no distinction from the original. Having business counsel can avoid this situation and the extra expense and delay that arises by wasting everyone’s time – not to mention the actual loss of reputation that is created for these individuals when everyone else realizes what has occurred. The party develops a reputation for being difficult and the changes he or she proposes in the future begin to lack credibility.
At a minimum, read what you are signing and ask questions about the terms that you do not understand. By this we mean read it – not skim it to see if anything jumps out – we mean actually take the time to sit down and read every word. There have been very few agreements that we have ever approved without any change or correction.
Copyright (c) 2009 – InternetLitigators – All Rights Reserved.
Jeffrey A. Cohen is a partner in the El Segundo, California office of Cohen & Richardson, LLP. Mr. Cohen can be reached at JCohen [at] InternetLitigators.com. The reader is cautioned that the information contained herein is not legal advice and is not a substitute for legal advice. There is no attorney client relationship created by this information.