Dear , are you an investor?

Well, if you are or will soon be, then I want to quickly tell you about the "Privity of Contract" Rule.

"privity of contract" means that only a contract party can enforce the agreement.

Put in another way, It means that you cannot sue a 3rd party who is not a party to a contract.

When you make the decision to invest your money with a company or an individual in return for specified returns on your investment (ROI), you are actually entering into a contract which is also subject to the privity of contract rule.

It means that the contract is only between you and the company or individual and no one else.

Not the Salesman, the person who recommended the deal or the the lawyer who prepared the investment Agreement.

As with any other type of Agreement, in an investment contract, you are responsible for yourself.

You should conduct your own due diligence...

Check out the company before entering into the contract.

It is not enough that you were handed an investment contract prepared by a lawyer.

The only parties to the contract still remain you and the investment company.

Asking for an investment Agreement before investing may be part of the legal due diligence but it doesn't stop there.

Your job, as an investor is to conduct your own due diligence check on the company whether by yourself or through an expert before investing.

And when you feel good with data and in your spirit, then you can proceed.

Because at the end of the day, the privity of the contract lies only between you and the company.

Addendum: Don't forget that the actual parties to the contract must be named in the Investment Agreement.

To your #LegalSense

P.S. If you need any clarity or help, please reply to this email immediately.