CONTRACT PARADOX
“always have a contract. never work with people who'd use it.”
The Lesson
Two rules that seem to conflict. Rule one: never do a deal without a contract, even with friends. You'll be glad you did. Rule two: never work with anyone who's likely to use the contract as leverage later. Good partners, when problems arise, push the contract aside and ask 'what's the right thing to do?' They need the contract for basics (who pays what), but in gray areas, they operate on doing right, not technical compliance. If someone needs every clause enforced in vague situations, they're the wrong partner.
Real-World Example
A founder signs a contract with a partner. Six months later, an edge case arises that the contract doesn't clearly cover. Partner A: 'Well, technically clause 7 says...' Partner B: 'What's the right thing to do here?' Partner B is who you want. The contract existed for clarity, not for weaponization. The founder learns to screen for this before signing: 'How would you handle a situation the contract doesn't cover?'
Watch Scott explain this lesson
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