Failing to follow through on things you promised to do is an easy way to get sued. This happens in business more than it should and that leads to lawyers being busier than they should be with preventable issues.
For example, if you enter into an agreement of purchase and sale that requires items to take place over time, it’s not o.k. not to complete the transaction: this will get you sued.
Similarly, if you agree that something will happen in the future, for e.g. and employee will get a raise if targets are met, and then you don’t follow through, you will get sued.
If you’re unsure about the cost of completing a transaction, or your ability to pay a raise, then don’t sign the agreement. Instead, press pause, research costs, financing, etc. and then sign knowing you’re capable of honouring the promise.
The Courts will not hesitate to Order you to carryout a promise you made to another party, so the time to spend legal fees assessing the nature of the promise is before you sign a document, not after.
Take your time: you’ll save money in the long run.
Inga B. Andriessen JD