Small Point – Big Consequences
When you work with a client or a vendor think about who writes what language in the agreements and billing documents which will control your transactions. This may seem like a small point, but it can have a major impact on how and when money changes hands in a business deal. It may be easiest to illustrate by an example.
Friday a large retailer called me to tell me my bill was past due. The caller said that per their letter to me so 60 days ago I had exceeded my 21 day payment period. I looked at their bill to me and it stated that my balance was due in 30 days. I relayed this fact to them and they backed off when they verified it. Why did they back down so easily? Because, they screwed up in a very unique and fatal way.
They wrote the documents involved, therefore they have the responsibility to be consistent in their language. They cannot use their contradiction to achieve a financial advantage at my expense. To be legal and trite at the same time they do not have a leg to stand on. It was their mistake to their detriment on documents they prepared therefore I can choose which ever elements to use that are to my advantage. Any money collected for late fees or service changes based on those documents would have to be returned. This has a really interesting potential for a class action law suit.
This principal of law can come in handy as it did for me. I’m not saying to always take another’s documentary language in a deal, but if you can it’s not a bad idea. Clearly if the language in a contract is something you cannot live with offer some of your own. Be careful what because the shoe can go on the other foot.
Big Point
The most important part of a business deal is doing the deal. The transfer of goods and services is presumably where all parties will make money. Never work with an agreement that attempts to take advantage of one party over another. Don’t sign one and don’t write one. Someone will feel cheated and then things will begin to come apart.
A handshake is infinitely more desirable than the strongest contract. Contractual clauses and the unreadable language on the back of invoices and bills of lading are the last resort of failed business deals. If you have reached the point where you are arguing over the fine print you are in deep trouble. Changes are the entire proposition is going to be a looser for you. All you are trying to do at that point is limit your losses. Recognition of this type of situation and the steps to pull back from the brink are money in the bank.
Final Point
So, how are things working out between me and my messed up local retailer? The situation is not going well for the retailer. They may not notice or care much, but after 32 satisfying years of doing business with this firm we will do our best to avoid them. If in a given situation we cannot find any other store to deal with we’ll buy from them. Mostly we’ll try to work with other retailers. In today’s world the customer has many options.