Re:An 'Investor' Destroyed My Startup
by janetacarr on Wednesday May 29, 2019 @11:16AM
(#20041149)
For those wonder how something like this can happen I have a theory. It's possible the stock 'purchase' agreement didn't offer capital as consideration for equity; rather, stock would be assigned to the 'investor', and the 'investor' would 'confer' capital to the company which requires no obligation by the 'investor' to provide the capital.
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Re:An 'Investor' Destroyed My Startup
by digitaltrees on Wednesday May 29, 2019 @01:30PM
(#20042967)
People can write whatever they want in a contract, that doesn’t mean it’s enforceable, or will stand up to scrutiny in court. Contracts have to have consideration. That means there must be something of value each party gives to the other.
I looked up the word confer in a couple online legal dictionaries, and if they are reliable, then it seems the word confer means "give, accord, administer, award" etc which would be an obligation to provide capital right? I'm curious how your structure would work in detail - I imagine there must be loopholes in contract law and consideration requirements and yours sounds interesting.