One of my former companies had acquired a project at the Red Square in Moscow. Our client was one of the giant contractors in Europe. One day they called us to Frankfurt airport for a meeting. Claiming that we didn’t finish the job on time, they were requesting 1 Million Dollars from us as indemnity. In the meeting 7 people, representing our client on various levels, were sitting opposite us. Three of them were lawyers.
At the end of the meeting, it became obvious that if any party was to ask for an indemnity it was our company. Their 3 lawyers couldn’t make any arguments. They just thanked us.
Our experience in making a sound agreement and being able to manage that agreement well were the underlying reasons for our success in that meeting.
A series of agreements are signed at the final stage of our projects concerning the sales of company shares. Of course, these agreements are prepared by utilizing the services of legal consultants. However, even the best legal team cannot help you if you don’t know your business and what you want to achieve. What can be worse is that the lawyers then start to make decisions for you.
Our system at the Red Square was successfully taken into operation. Our client did not contact us again on legal issues.
The oldie of the week: Dave Clark 5 – Glad All Over (1968)