Risk verses Reward

It’s a phrase I’m sure we’re all familiar with.

Is the risk of getting into trouble with my (adult!) sons if I call them too early on a Sunday morning worth the reward of actually getting to speak to them before they realise how early it is and that I’ve woken them?

Is the risk of being disappointed in my football team worth the reward of the off chance that I might be in the crowd to see a rare win?

Is the risk of undertaking work without the benefit of a properly written contract worth the reward of avoiding the costs and aggravation of having the terms properly reflected in writing?

As with everything in my world (including all the above) nothing is ever guaranteed.  It’s quite common for my clients to tell me that they don’t have a written contract, and they usually expect me to be disappointed in them.  However sometimes that can be to our advantage – it depends on what side of the dispute I’m on.

However, if you’re the one trying to enforce the contract, then a lack of clear terms will more likely than not be to your disadvantage.

In a recent case, a party had offered to provide their services in return for a share of the end profits.  However, the parties fell out before the project came to an end.  The claimant argued that they were entitled to be paid for the time that they had invested in the project.  The court disagreed.  The fact that the parties had never addressed their minds to what would happen if the project never finished didn’t give the claiming party the right to argue that they had an automatic right to their fees.

Whilst this decision may not be that surprising, what might shock you is that the claiming party were a solicitor’s firm, which shows that not only do law firms sometimes act without a proper written contract, but sometimes they start court proceedings which they then lose.

This demonstrates that not only are there benefits in taking legal advice before you enter any kind of joint venture project, but also that simply because you are being sued by a solicitor does not automatically mean that they will win!

Kleyman & Co Solicitors.  The full-service law firm.  Helping you get rewarded for the risks you take.