If you find yourself doing a longer term consulting contract to help turn around a troubled company, ensure you also have your agreement signed by the entity or investors that fund the troubled company—not just the troubled company. That way, if things don’t work out—and the troubled company is not surviving—you still have a way to collect any monies owed to you. A troubled company is obviously not one you will want to sue as it will likely be out of business before the courts see the case. I know a person who was owed money by a cash-strapped company and the investors held all leverage as they could extract concessions from the consultant simply because there was no logic for the consultant to sue the troubled company they had been working for. Source: Anonymous
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