|Posted by Michael Sausman on February 13, 2011 at 10:04 PM|
The CEO at a company I once worked for had a favourite saying, "If it smells, it probably stinks."
At the time, the senior management used to think this was very amusing, but though its not how I would phrase it, it is actually often true.
One of my clients had signed an overseas distribution contract that was going sour through no fault of theirs. We eventually brought this to some kind of a conclusion but during our discussions the client said that prior to signing the agreement they had had some second thoughts and felt uncertainty but felt that they were pressured into signing it.
Now quite often this can be cleared up by a bit of further questioning as it is due to a misunderstanding, lack of explanation or just natural caution in the face of a risk.
Sometimes, however, it can be due to the agreement being too one sided or one of the parties trying to make a quick buck.
So, if it smells.... Talk to a lawyer about the commitment you are making, but make sure you talk to someone like me, with commercial experience, as well. Often we have seen these deals before and can save you money and a lot of stress.