Attorney Document Review: Ounce of prevention is worth a pound of cure!

Attorney Document Review:  Ounce of prevention is worth a pound of cure!

An ounce of prevention is definitely worth a pound of cure.  If you live in Port St. Lucie, Stuart or Jupiter Florida and are considering entering into a reasonably complex business deal, a real estate matter, a complex contract or an situation in which you may potentially increase your personal liability, it is wise to have an attorney review the documents involved and advise you as to the potential liability before signing any paperwork.  I am a Lawyer serving Stuart, Port St. Lucie, and Jupiter, Florida and have a number of clients that either did not know what they signed, did not review what they signed or listened to a verbal summary of an agreement of what they ultimately signed and then were surprised when they found out the contract was not what they thought it was.

It is important to understand the potential liability before it is too late.  It is much easier to say no before you sign then after.  Once you agree, you may be on the hook for much more than you bargained.  It is wise to have any complex contract reviewed, prior to executing.  Know what you are signing and understand the potential consequences.

For example, this is a scenario which could happen by cosigning for line of credit.  Friend B asks friend B to co-sign for a business contract.  The terms include an increasing line of credit and personal liability.  There are also clauses within the contract which give the creditor latitude in some of the terms of the contract, an indemnification clause for any equipment malfunction and a built in attorney’s fee clause, late fees and additional charges, penalties and interest for late payments and breach.  Friend B is starting the business and asks friend A to co-sign on the start-up line of credit with the supplier, which is only $5,000.00.   Friend A signs thinking well it is only $5,000.00.   As part of this contract, the supplier also provides equipment to service the product supplied.  The supply contract is for 3 years.  Friend A and Friend B have known each other for 5 years and according to friend A, friend B is upstanding and good for it.  A year and a half later friend A and friend B have a falling out and aren’t speaking.  A year after that, there is a fire caused by the equipment provided by the supplier, which burns down the building B is renting.  Over the last 2 and a half years B has extended the line of credit (which was provided for in the contract) to $50,000.00.  The inventory was consumed in the fire and B has no insurance.  B is now out of business and files for bankruptcy.  What about Friend A?  Where does he stand?

The stories are endless.  I only cosigned for $5,000.00.  They told me I was not responsible for those fees.  I don’t know what it said…I did not read it or I couldn’t understand it.  Attorney Review:  Ounce of prevention is worth a pound of cure!

If you need a lawyer to review documents in Stuart, Port St. Lucie or Jupiter, Florida, please give my office a call.