I DON'T READ CONTRACTS......by Steve Duhl 
Monday, July 29, 2013, 10:28 AM
Posted by Administrator
I'm sure I've written about this in the past but, figuring that nobody ever goes back and reads the old stuff (though you should...it's better than the new stuff), I will take the chance of repeating myself. LAWYERS DON'T READ CONTRACTS.

Oh, they'll do it for clients if they get paid and then they'll give the client their opinion on the problems with signing. Usually, the party with the most power in the deal writes the contract and, depending on whether the other party has any power at all, may or may not agree to changes. In other words, if you're credit is crappy and you're lucky to get that landlord to lease you the apartment at all...you're likely stuck signing whatever lease he/she puts in front of you. Lawyers are notorious for crapping up business deals by advising their clients not to sign ...what they perceive to be... one sided contracts.

When I sold Volkswagens (in the late 70's...before you were born), I noticed that dentists read the sales contract. So did accountants, taxi drivers, hot dog vendors and engineers. Lawyers just signed. At the time, I thought it was because lawyers could get out of any contract terms they didn't like...so why bother reading. Later, I found out that lawyers didn't read because lawyers knew we weren't going to change the contract for them. You want the car? Sign the contract.

The world now is more complicated then it was in the late 70's (before you were born). There are contract for cell phones---that nobody reads; for internet purchases---that you click "I accept" without even bothering to look at the language; (yes, even for scooter rentals).

Recently, I've had a couple of clients who claim that they didn't sign the rental agreement for their credit card machine. There are two aspects to accepting credit cards at your business....1) the merchant gets charged a percentage of the sale for each transaction and a monthly fee and 2) you've got to own or rent the little machine that attaches to your phone line and prints the receipt. Some companies give great deals on the percentage but rip you off by renting you the equipment at an exorbitant rate.

So, here's what happens: The salesperson sells you on the great rate and sort of doesn't mention the rental cost of the little machine. He/she hands you a bunch of papers to sign and.....without looking....you sign where you're told. Turns out....you've signed a lease agreement; you're stuck it for years; and you're paying a fortune for equipment you could have bought outright for $200.

One of my clients.....I believe based on signature analysis.....was ripped off the old fashioned way....the salesperson forged her signature. Another took a look at the papers and agreed that he'd signed.

When we got our credit card equipment, we did it the warm and fuzzy way: A client was working for a credit card processor company where one of the owners went to the same summer camp me and my sister went to. While I am always skeptical about doing business with people whom you "should" trust, the client+summer-camp-relation seemed too good to ignore. We bought our equipment for a couple hundred bucks and have merely had to pay the exorbitant monthly and transaction fees. We don't have a monthly lease payment and I don't feel too ripped off.

Should you read all contracts before you sign them? YES.
Will you? Of course not and neither will I.

Good news! Successful "merchant services" salespeople make a LOT of money.

*Come back to the blog in a few days for my explanation of why doing business with people you "should" trust is a crappy idea.



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