Are there any Lawyers in the house?

[Guest Close Quarterbore]

I need some simple advise about a business purchase. I am paying what I consider to be a lot of money to buy the rights to a software package. This package was coded by a minor (age 15 now) and I am trying to find someone that might know if a contract of sale with a 15-year old is adequate or do I need to involve his parents?

The individual in question does not have a great track record for being reliable so I am just a little nervous but I know even less of his parents. The script itself however has the potential to be an excellent product once finalized. I don't wish to share the specifics yet but the base code is something that everybody here is familiar with and I spent a huge number of hours helping develop as well as customizing for the site.

I probably know this program as well as the developer himself.

[ArtsieAng Super Moderator Find all posts View Profile Close ArtsieAng]

Ken,

My husband is a lawyer. He would be more than happy to help you out. He'll be home tonight, if you need him.

[Guest Close Quarterbore]

I would like the advise... In general I am woried that contracts with minors under 18 would not be legally binding and that even if a guardian was to sign the contract that they may not be legally binding the teen in any way.

The seller is interested in selling and I am interested in buying but before I invest in a script that requires a whole lot of time and effort to finish I sure want to ensure that I don't get burnt in a year or two with him comming back and claiming rights.

Now, the money I am spending is not such a huge amount that I will be that hurt compared to the harm to the sellers reputation if this were to go bad but I am really getting nervous. I normally trust my gut fealings but on this one I am really not sure if I should jump forward or turn and run away!

[Beaglemom3 Senior Member Find all posts View Profile Close Beaglemom3]

There are lawyers who specialize in internet and proprietary law. At my law school, there is a track for this area of the law. I, myself, am in the Healthcare/Biotech track and am of no use.
B.

[Guest Close Quarterbore]

I was given some good advise from my home away from here:

http://ar15.com/forums/topic.html?b=...age=1&#8291536

In general, I believe my worry that a contract with a minor would be non-binding but I just need to ensure that the sale of the intellectual rights could not be later contested.

Now, for the price I am paying I could take the risk and make sure that everything is adequately documented such that I could fight it later if needed and if I lost the fight at that point I can use the agreement and subsequent retraction for character impact.

This has become really complicated for what seemed like a simple purchase.

[Dave M Senior Member Find all posts View Profile Close Dave M]

Ken -

You are smart to ask the question. I have faced this issue in two different business situations. Although the correct answer will depend in part on state law, this Business Week article should give you a reasonable understanding of the issues and what you should discuss with an attorney.

[JLB Please excuse me, I'm a Dick. Not a moron just a Dick Find all posts View Profile Close JLB]

As I sent recently by email:

http://www.alllaw.com/clickthrough.a...b=0&aal=0&bk=0

[3kids4me Super Moderator and Super Mom Find all posts View Profile Close 3kids4me]

I'm not a lawyer and don't play one on TV, but the first thing I learned in Business Law class back in the day was that minors could not enter into contracts, and that if they did, the contract could be voided at any time by either minor or parent/guardian.

So...don't do anything until you get advice from a real lawyer!!

Sharon

[tonyg Goomba & Super Moderator Find all posts View Profile Close tonyg]

I am not a lawyer and this is not legal advice, but I would not enter into a business contract with a minor without the parents also signing. State laws may vary as to the age at which a person ceases to be a minor for various legal situations.

[M. Henley Class President Find all posts View Profile Close M. Henley]

But did you...

I'm not a lawyer and don't play one on TV...

Sharon

But did you stay at a Holiday Inn Express last night?

[Dave M Senior Member Find all posts View Profile Close Dave M]

I am not a lawyer and this is not legal advice, but I would not enter into a business contract with a minor without the parents also signing.

As discussed at the link in my post above, having a parent sign doesn't help much in most states, unless the parent has been given specific signing authority - as an appointed guardian - by a court.

I couldn't believe, when I first encountered this situation, that if a parent or both parents signed on behalf of or along with a minor, the contract would likely not be binding. Our attorneys made it clear that the issue was legitimate!

[Guest Close Quarterbore]

In a case like this it sounds like the contract of sale is nothing more then a personal reputation thing. I was already starting to work on a similar product so I guess I may end up buying the rights with the knowledge that the contract (bill of sale) will not be legally binding with the understanding that I need to convert the existing customers to my new system and maintain a level of seperation for the two products.

This way, in a couple years, if he retracts his agreement to sale he would have rights to the script as he sold it but by then I will have another competing product that would be established with his former customers converted to my product.

This makes my whole head hurt but I think the risks are worth the potential gains. There are times in life when you need to take on some risks and from what I have read there is little I can do contractually to cover myself but I need the code bad enough that the risks. I just needed to appreciate the risks going forward to minimize them.

I also still need to talk with an Attorney but at the $300/hr my Attorney charges that could get to be an expensive chat!

[T. R. Oglodyte Moderator Find all posts View Profile Close T. R. Oglodyte]

I also still need to talk with an Attorney but at the $300/hr my Attorney charges that could get to be an expensive chat!

Ken - contact the Attorney Referral service at your local Bar Associaiton. You may be able to get a half-hour or so of time with an attorney possessing specific expertise in this area, at a reduced rate.

My guess is that expertise in law pertaining to minors is more important than intellectual property expertise.

[Dave M Senior Member Find all posts View Profile Close Dave M]

Good point, Steve. Those reduced rates typically range from free to about $75 for a half hour to an hour of time.

[somerville Senior Member Find all posts View Profile Close somerville]

I am a lawyer, and this is not legal advise, but I agree with Steve that the biggest issue would be the validity of a contract with a minor. See a local lawyer who specializes in contract and intellectual property law.