Re:StabilityAI Cofounder Says CEO Tricked Him into Selling S...
by cj on Thursday July 13, 2023 @04:54PM
(#36715845)
Good business has a lot to do with intent, not about technicalities or legalese.
If the intent of both parties to a transaction is X, and the intent is agreed upon, it's absolutely terrible business for either party to immediately turn around and do Y via a loophole/technicality/etc.
For many founders, it's often their first time doing these transactions. The other party (investors, PE firms) do these transactions every day of the week. It's impossible for a founder to have an upper hand (even with the best legal counsel), so to a certain extent you're forced to trust the other party has good intent and isn't going to exploit you via a technicality or loophole.
If the intent of both parties to a transaction is X, and the intent is agreed upon, it's absolutely terrible business for either party to immediately turn around and do Y via a loophole/technicality/etc.
For many founders, it's often their first time doing these transactions. The other party (investors, PE firms) do these transactions every day of the week. It's impossible for a founder to have an upper hand (even with the best legal counsel), so to a certain extent you're forced to trust the other party has good intent and isn't going to exploit you via a technicality or loophole.