Put it In Writing

A book I know about that is “in press” has two authors. That is by itself nothing unusual. The two people in this case have a handshake agreement to split the profits, but little else was discussed. That is also not unusual, but can lead to distrust, the breakup of a long friendship and perhaps even court.

Not long ago I wrote about the dangers of thinking that because some deal you have made is not in writing you cannot be held to it. How Can it be a Contract? Very likely, the handshake deal between authors is intended to be performed within a year, so it is enforceable. It does not need to be in writing. But it is a bad idea not to write it down.

I know, I know. Lawyers want everything in writing because they do all the contract writing and make money off it. I suppose they do. Doctors (and a few other professions) write all the RXs. Does that mean we should stop treating infections, high blood pressure, and a host of other conditions with drugs and revert to the state of nature, with a mean life span of something like 40 years?

There are a few reasons, having mostly to do with human nature, why deals should be in writing, even if it is a simple writing. They are memory, vague talk and what-ifs. The purpose of the writing is not to give a basis for a lawsuit but to get rid of the forgetfulness, uncertainty, and events not thought of that cause lawsuits.

Humans have lousy memory for details, especially when their money or other stakes are involved. They are also often vague when they discuss details of deals, and may well have different meanings or concepts in mind. Frequently some issues will be so loaded with emotion they will not come up or, if they do, the parties will drop them like poisonous snakes.

What if anything did the two authors I mentioned say, for example, about whose name comes first on the cover, or whose bio is longer or more extravagant on the cover? Who decides what cover art to use, or what title? Who is responsible financially if some extra composition or editing is needed? Or did they discuss these?

My advice is sit down and try to put it in writing, stating each participant’s responsibilities and benefits. Try to think of things that are likely to happen in the course of the deal being carried out or that may not. Also, think about things that are wildly unlikely but could happen. Automatically, if you are writing together—or even if one does a draft for the other’s approval—what was vague and stated in an unclear way will become clearer.

As an example of the unexpected, small companies often team together to bid on a government contract which neither alone has the skill set for, but they do together. It is very important to agree in detail and with precision on splitting revenue, and on splitting the risk that the deal will go out of kilter because of a technical issue, resulting in near-zero or loss. How is the loss going to be split?

Do not leave things in the air—Put it in Writing.

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