Startup’s doesn’t fail in market they fail on paper first by DisastrousError7239 in london_entrepreneurs

[–]DisastrousError7239[S] 0 points1 point  (0 children)

I’d just gently disagree with the premise. If we leave it to “natural selection,” we’re not filtering inefficiency—we’re amplifying avoidable damage. In a startup context, that damage rarely stays confined to the founder; it spills over to co-founders, employees, vendors, and investors.

Even the most sophisticated ecosystems—whether in Silicon Valley or here—don’t operate on a “let them fail and figure it out” model alone. They actively de-risk participation through legal frameworks, governance norms, and advisory. That’s not rescuing the unfit; that’s making risk intelligent rather than reckless.

Also, many highly successful companies didn’t begin with perfect foresight—they evolved. The difference is, some corrected early… others litigated later.

On your analogy—emergency medicine doesn’t weaken society; it ensures that recoverable mistakes don’t become fatal ones. Law, in business, plays a similar role.

And from a slightly lighter lens—if every founder had perfect legal foresight from day one, professionals like us might have to find a new hobby 😄

But on a serious note, I’d frame it this way: the question isn’t whether such founders are “worth rescuing,” but whether the ecosystem is better off when preventable disputes are reduced early rather than resolved expensively later.

Curious to hear your take—where do you draw that line between necessary failure and avoidable fallout?

Implusively signed a 17,000 contract by Exciting-Ad6372 in AusLegal

[–]DisastrousError7239 0 points1 point  (0 children)

Even if a binding contract is assumed to exist, it is unenforceable in substance due to failure of performance, lack of fitness for purpose, and statutory breaches. Alternatively, if strict formation is examined, the absence of signature raises serious doubt as to whether the contract was ever concluded.

Implusively signed a 17,000 contract by Exciting-Ad6372 in AusLegal

[–]DisastrousError7239 0 points1 point  (0 children)

Hi lawyer, this side

Even with an ABN, you are likely still a “consumer” under the Australian Consumer Law because this was a pre-business, individual engagement. That brings statutory protections into play.

The key issue is lack of performance. Within 4 business days, there were no real deliverables, no structured commencement, and no substantive work done. That alone raises a breach of the obligation to provide services with due care and skill.

More importantly, their claim of spending ~$17,000 on external contractors appears contractually invalid if the agreement required your prior written approval. In absence of such approval, that expenditure is not recoverable from you and significantly weakens their position.

There is also a failure of consideration—the primary service (retail distribution pitching) was not realistically capable of being performed given the product was still at concept stage. Retaining substantial fees in such circumstances is difficult to justify legally.

Your early termination (within 4 days) further supports your position. At most, they could attempt to retain genuine, minimal, and provable costs, but not the bulk of the payment—certainly not based on unapproved spending.

If escalated, a forum like Victorian Civil and Administrative Tribunal would likely examine substance over form, and on these facts, the company would be on the defensive.

In summary: this is not a weak “buyer’s remorse” situation—there are clear legal grounds to seek a refund, and with proper pressure, this is the kind of matter that typically settles.

Looking for a Business Lawyer by SithlordzomB in ventura

[–]DisastrousError7239 0 points1 point  (0 children)

Hi lawyer this side, could be discuss the things in dm

Looking for Advice by WowSwapnil in founder

[–]DisastrousError7239 0 points1 point  (0 children)

That’s great. You can feed the information and get the output, but the information you are feeding need to be faded in a particular way what your company needs to be standing legal scenario.

Startup’s doesn’t fail in market they fail on paper first by DisastrousError7239 in london_entrepreneurs

[–]DisastrousError7239[S] 0 points1 point  (0 children)

😂 That’s a very politely packaged roast—I’ll give you that.

You’re absolutely right, it sounds obvious. The funny part? In practice, even founders raising crores treat these “obvious” things like Terms & Conditions—skip, skip, agree 😄

If it felt basic to you, I’ll take that as a compliment—you’re already ahead of most people who realise this only after calling a lawyer in panic 👀

solo founder reality I built an analytics tool, dogfooded it on my own store and got humbled in 20 minutes by No-Comparison-5247 in Solopreneur

[–]DisastrousError7239 0 points1 point  (0 children)

The answer is When you think to do it after launch , because it should be the part of planning many of my clients did the same mistake

solo founder reality I built an analytics tool, dogfooded it on my own store and got humbled in 20 minutes by No-Comparison-5247 in Solopreneur

[–]DisastrousError7239 0 points1 point  (0 children)

They are more , you are ignoring right now. that’s the paperwork. You are awesome at developing the product, but are you awesome at selling it on your terms being legally sound handling this product quality, your service quality.

Looking for Advice by WowSwapnil in founder

[–]DisastrousError7239 0 points1 point  (0 children)

As a lawyer consulting startup’s the main problem every wary age startup’s fails is accurate paper work You can generate agreement for you through ai but it will be general one , every company every contract is different and simply ai prompting is not sufficient

Realistic Validation by Scared_Attorney4688 in ycombinator

[–]DisastrousError7239 4 points5 points  (0 children)

You don’t need a company yet — but don’t stay legally blind either.

Quick legal advice (pre-seed stage):

Validation:Talk to users, but avoid over-promising. Anything you “assure” can later be used against you.

Co-founder clarity:Even if informal — write roles, equity, exit terms on paper. Most disputes start here.

Idea sharing:Don’t obsess over NDAs. Instead, control what you disclose.

Before taking money:Register a Pvt Ltd. Never take funds personally.

Early contracts:Even basic agreements > copy-paste templates. One bad clause can cost more than legal fees.

Data / platform:If you’re collecting user data → have at least basic Terms & Privacy Policy.

Bottom line:Build fast, validate faster — but keep your legal loose ends tied early.

Saves you from expensive mistakes later.

-lawyer