Top 5 Agreements That Get People In Trouble
A signature may look very simple and common. However, it can do a lot of damage to you. As a matter of fact, it can cause your downfall. On daily basis, we all make mistakes of signing terrible agreements that may ruin us in the nearest future.
There are instances when business owners and highly influential people in the society land themselves in trouble by appending their signature to an agreement. Some lost their asset, forfeit their share of business and sometimes go to jail.
Top 5 Agreements That Get People In Trouble
#1. Personal Guarantees
One of the agreements that get people in trouble is personal guarantees. It may interest to know that whenever disaster strikes, only three things remain; rats, cockroaches, and personal guarantees.
Most people sign a personal guarantee for debtors and other people they don’t really know much. Sometimes, the person you sign for will be of good behavior and adhere to the terms of the agreement. This is actually very wonderful.
What now happens when the person fails to comply? Or in the case of employment, the person cart away with a huge sum of money? this could be happening several years after you have signed the agreement.
Sadly, you might have forgotten that you appended your signature to vouch for somebody several years ago. Perhaps you are now retired, sitting down by the poolside and relaxing. Only to receive a call that somebody you stood for as a guarantor has committed a crime.
You may think it is not your problem. Unfortunately, most guarantees are as dangerous as the day they were signed. Many guarantors usually find out the hard way and sometimes they pay a huge sum of money just to clean someone else’s mess.
We aren’t dissuading you from signing personal guarantees, but if you must do ensure you truly know the person you are vouching for.
#2. Loan Agreements
A loan agreement definitely among the agreements that get people in trouble. Sometimes taking a loan may be our last resort, especially when we are in a tight situation.
However, before you append your signature on the loan agreement ensure you understand every bit of it. If possible hire a legal professional to help you interpret the content very well.
Generally, most loan agreements are very long, boring and complicated. So, I don’t even advise you to read it yourself. You will definitely get tired and sign it without understanding anything.
Watch out for interest rate and other terms and condition, including what happens if you are unable to pay at the agreed time. Many people have lost their businesses and other valuable properties by just signing a loan agreement.
According to experts, signing a loan agreement with a financial institution is like signing a deal with the devil. You obviously don’t need a soothsayer to know that it never ends well.
#3. Partnership Agreement
Most partnership agreements always don’t end up well. Its either one of the partners is driven by the company or disagreement will make them sell their assets.
Furthermore, in most partners in a partnership agreements feel like warden while the agreeement itself feels like prison. Generally, most partnership agreements fail becuase of two major reasons. These reasons are;
- Most Partnership agreements have no spelt out clauses for possibility of buy out in future.
- Also, Partners expect to be treated equal and this is definitely not possible. This is due to the fact that their investment and level of commitment differs.
#4. Construction Contracts
Construction contracts is also among the agreements that get people in trouble. Ensure that you read the contract agreement very well before you finally append your signature to it.
As a matter of fact, a slight mistakes can make you to be liable for everything. Including injury sustained from the project site, compliance with building codes, damages from defective etc. the list is endless.
You need to to hire the service of a professional lawyer before you sign a construction contract. This is due to the fact that the smallest mistake you make could cost you the entire profit and sometimes, you business may go in for it.
#5. Lease Agreement
Lease is among the 5 agreements that get people in trouble on our list. Leasing agreement is always very complicated and most times people put themselves in a very tight situation.
These are the top 5 agreements that get people in trouble. It is advisable that you hire a legal professional to interprete every agreement before appending your signature.
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