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Paid $800 for a boilerplate contract template online. Got sued anyway.
I bought a standard operating agreement from a legal document site for my LLC based in Phoenix. Thought it would save me lawyer fees. Six months later a partner claimed the profit split language was unclear and I had to pay $3,000 to settle. Templates are not worth the risk. Has anyone else had a cheap document backfire on them?
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iris3941mo ago
The $3000 settlement actually sounds cheap compared to what I've seen. I used a rent-to-own contract template off a legal website for a property I was selling in Austin back in 2018. The template had a clause about "time is of the essence" buried in there but the buyer's lawyer argued it wasn't properly highlighted. Ended up in mediation for six months and paid $12,000 in fees plus had to refund their deposit. Templates don't know your state's specific laws either. Arizona has really specific rules about LLC operating agreements that a generic template probably missed completely.
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alice_harris351mo ago
Totally feel you on this, @iris394 templates can be such a gamble.
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