Comment by JohannesH
7 years ago
I'm curious. Anyone care to outline the legal ramifications of this action? What would happen if IBM tried to stop his side-project?
1. Would IBM be able to enforce the original contract as it was outlined when they sent it to him? Would he be liable to fraud or other similar charges (for instance if he altered the contract after IBM representative added their signature)?
2. Or would the altered contract stand up in court?
This reminds me of that extreme example of altering the contract: https://www.telegraph.co.uk/finance/personalfinance/borrowin...
I routinely alter almost every contract I receive. It drives a lot of doctor offices/emergency rooms nuts. But they have so far always calculated that their liability will be higher if they refuse service than if they allow me to cross out the part that says I won't sue them if they kill me.
It is a point of amusement to me to see that the receptionist is extremely uncomfortable agreeing to the terms I have come up with in the last five minutes. They don't think it is reasonable for me to expect them to execute the altered contract without consulting attorneys. I point out that five minutes ago they asked me to sign a contract without consulting a legal expert. Their multi-page contract had been painstakingly drafted by a team of expensive lawyers and meticulously tweaked over years. Yet they gave me mere seconds to read it, understand it, and sign it under duress of not receiving medical attention. If they balk at the contract I hand back to them, how can they expect me not to balk at the original contract?
On the other hand, if they refuse to provide medical care because I wouldn't sign away my rights to any photographs that might be submitted to medical journals, they had better be very confident in their lawyers.
Banks, rental agencies, repair shops, etc., on the other hand, can safely refuse my revised contract. Most don't glance at them when I hand them back.
There is a very good reason (pressure) these kind of contracts are unenforceable in most of the world. That would work both ways.
1 reply →
Very interesting read. However, he changed it before the bank added their signarture. I imagine that if you change the contract after a signature is added by one party, and then add your own signarture, that would surely be fraud... right?
If you presented the post-hoc changed contract as binding, I believe so. If you presented the post-hoc changed contract back to IBM and went "Hey, do you agree to an updated contract?" then you'd probably be laughed out of their office, but that's not a crime to ask them to update a contract.
2 replies →
I remember the story. The bank's CEO (the guy is a billionaire of considerable notoriety in Russia) threatened to put the story's protagonist in jail for fraud for 4 years.
The protagonist took the threat very seriously (as he should have) and in a later interview to banki.ru (i.e. banks.ru) said that he was fleeing the country to a destination he preferred to keep secret. Reason being the precise "4 years" that was used. Not 2, not 3, not 5. Meaning that the CEO had already made "arrangements".
Then 2 days later there was an article that both him and the bank have reached a peaceful resolution and were recalling all mutual lawsuits.
IANAL, nut I would say 2. You can alter a contract proposition. It was up to IBM to check what was actually signed.
At least for real estate contracts in the US, both parties have to initial each of the alterations and amendments to the contract that typically come up during negotiations. I doubt a random line crossed out in a contract would hold any legal weight in court unless acknowledged by both parties.
On the other hand, if I intentionally mislead you about the contents of a contract, it might not be binding. If you hand me a 10 page document, I pencil something in on page 7, sign it and hand it back to you without notifying you of the change, I don't thing you'd be required to honour my modifications.
Or you know, it might be fraud, as in the crime. Misleading someone about the contents of the contract they signed is exactly that. The paper (they printed) and gave to you in the understanding that you would sign and return it was altered in flight.
Essentially: if IBM wants you thrown in jail, you will be thrown in jail for this. Have fun in court.