By Eric D. Morton
Almost every business lawsuit I’ve seen could have been be prevented. Many lawsuits come about because people don’t communicate effectively. Another leading cause is people primarily interested in being right. Sometimes you can tell when a dispute may arise and avoid it early. Simple as it may seem, one way to avoid disputes is to avoid difficult people. Here are some early warning signs of difficult people that will cause trouble.
1. Refuses to be specific or sign a written agreement.
These are people who don’t want to sign a written contract or remain vague on certain key terms. They often say things like, “We don’t need to put it in writing, we understand each other” or “Don’t worry, we’ll work it out.” They delay reviewing documents. They don’t respond to emails concerning key terms of a contract. These behaviors could mean trouble since they may be reserving a way to back out. People who do business with integrity are not afraid to sign written agreements. Do not proceed with anyone who won’t.
2. Wants to renegotiate after the terms are agreed.
Suppose you agree to the terms of a deal and send a written contract (or purchase order, or whatever form of agreement that you use) to the other party who signs it but sends it back with several changes to the terms you negotiated. You don’t have a contract at that point and you may wish to simply walk away. This is someone with
whom you probably don’t wish to do business. Even worse is the person who wishes change the terms of the agreement after it is signed and gives excuses for failing to keep the agreement. Do not agree to any waiver or modification unless it is writing and only for the purpose of finishing with the contract so that you don’t have to do business with that person anymore.
3. Wants you to perform before the deal is done (or vice versa).
This is the person that wants you to pay or to start work before you have finalized your agreement. Don’t deliver
until you have an agreement on every aspect of your contract. Someone who wants to engage work or services before you have a clear understanding of the agreement could be attempting to hook you into a bad deal. You may agree
to terms that are not favorable to you if you have already taken someone’s money or received services or goods. Don’t fall for this kind of manipulation.
I recommend that you avoid dealing with manipulative or demanding people, whether it’s a large multinational corporation or individual homeowner. At best, these persons are a headache who demand more time than they are worth. At worst, they are an expensive lawsuit waiting to happen. Watch for the warning signs and stop doing business with such people as soon as possible. You’ll be glad you did.
Eric D. Morton is the principal attorney of Clear Sky Law Group, P.C. He has been an attorney for more than 30 years and has dealt with many difficult people. He can be reached at emorton@clearskylaw.com, 760-722-6582, and 510-556-0367.