

When Contracts Destroy Trust - newy
http://hbr.harvardbusiness.org/2009/05/when-contracts-destroy-trust/ar/1

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newy
There are different schools of thought on this. The author advocates
implementing some flexibility in a formation contract, including setting aside
some equity for whoever emerges as the dominant contributor or some future
reallocation. On the other hand, there's the view that any up-front contract
should be iron clad and detailed so that the parties expectations are aligned,
and any ambiguity just leaves open a possible dispute. I'd imagine a lawyer
would subscribe to the latter view.

Thought this crowd would be interested since this comes up in the context of
an equity split among founders almost always. Interested in hearing opinions.

