Question

Read the following scenario and answer the question in 5-10 sentences.

You are an entrepreneur who has developed a new kind of electric beard trimmer that trims beards more closely and more quickly than other trimmers on the market. SuperShaver, Inc. is an experienced manufacturer of facial shaving products and learns about your new invention from a trade show. SuperShaver is interested in contracting for the intellectual property rights to your shaver. A representative of SuperShaver wants to offer you a percentage of the profits and is willing to agree to a deal right now with an oral agreement. Assuming the terms are reasonably fair, consider whether you should accept SuperShaver's oral offer right now and not wait. Evaluate the positive and negative contractual implications of that decision.

Answer 1

In a sphere where corporates and intellectual property is involved I will not deal with an oral agreement.

The corporates are big business houses with a lot of resources and I may end up losing my invention to them for nothing.

The positive contractual implications of the decision can be I will get a fair share of the profits from the sale of my invention through Supershaver Inc. as the terms they are offering in the verbal contract are very fair. I will not have to undergo the stress of making a contract and getting it vetted through a lawyer. It will save me time which I can use in some other productive work.

The negative contractual implications of that decision can be that Supershaver Inc. does not honour the verbal contract after getting my design and innovation. It may also be possible that they do not agree to all the terms which were originally offered in the deal and I may not get fair and just share in the profits which is being made by Supershaver Inc. by selling my products. As we know verbal contracts rarely hold in court and this may end up in way where I am forced to go in a court and also end up loosing money on legal expenses.