DALLAS -- Two men walk into a bar, but instead of making a drink, they made a deal.
No, this isn't the start of a joke!
A couple of guys agreed to go into business together over dinner. The terms were set in stone, or rather some hotel stationery, and the rest is history.
The note read, "Three year contract, $100,000, company car, benefits, and then it says 2% of option and that's essentially the 2% equity deal."
In plain English, that means if the company ever sold then the guy who wrote the note gets 2% of the dough.
"You always hear about the cocktail napkin contract and that's really what it was," Brian Hail from the Kane Russell Coleman & Logan firm said.
Lo and behold, the company did sell for $820 million, but one of the partners didn't fork over the other guy's cash.
"In Texas, generally speaking, you and I could shake hands and we could cut a deal on something and it's perfectly legally binding if it's in writing. Even if it doesn't go into great detail as long as you hit on the essential points," Hail explained.
The guy who sued ended up settling for $1 million, which is nowhere close to 2%!
But hey, you gotta do what you gotta do. If you're on the other side of things, be careful what you write down!