Watch out for these two common mistakes:
1. Creating a legally binding contract, when all you wanted was a short, informal “roadmap” to your deal before negotiating the contract.
This mistake is easy to make — even if you are only sending emails back and forth — and often expensive to fix. It’s also easy to avoid, if you have the right legal advice.
2. Not getting the best deal because you consulted a lawyer too late, after finishing your term sheet.
Frequently, a short review by a lawyer can reveal important business and legal points that need to be settled up front in the term sheet, before investing money in drafting and negotiating a full-length contract. And, legal fees can be much lower when you resolve the major issues first in the term sheet.
Attorney Harry Boadwee is a technology contracts lawyer in Silicon Valley, California, with over 20 years of experience. He represents both large corporations and small startups, and over the years has negotiated with many of the largest U.S. and international technology companies. He has years of experience creating, drafting and negotiating term sheets for many different types of business deals.