Question

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, evaluate the positive and negative contractual implications of accepting SuperShaver's oral offer.

Answer 1

Answer:

Oral Contract with SuperShaver, Inc.

For the Intellectual Property contract with SuperShaver, Inc. to be legally enforceable in the court, it needs to be formally written down.  But, before this time, I must have obtained a registered copyright to my intellectual property (IP).  This will ensure that I only grant SuperShaver the right to use the IP for a specified period and not the right to further develop or modify it in any way.

There are many details, therefore, which an oral contract cannot capture.  Even, where the oral contract terms seem fair to both parties, | will insist on a written down contract.  The written agreement will also capture how the sales proceeds and associated costs will be monitored from which the profits sharing will be implemented.

Can the agreed percentage of the profits that I will be receiving.  and the contract duration be captured by an oral agreement?

Explanation:

These days, oral contracts are not legally binding on the contracting parties unless it can be proved beyond reasonable doubt.  They also lack the required evidence to substantiate any claims.  To avoid regrets, it is always better to document agreements properly and legally.