The Legal Dilemma with the prop firms
I have read this before how these legal contracts that these prop firms make you sign are incredibly one sided. I got the contract from Bright, Assent, and Echo and had my aunt reviewed them who is a lawyer. It is commonly said that lawyers make a big deal out of the smallest things in contracts however; Iâve never seen my aunt react like this. She told me that they have complete and total control and can really tell you to do anything.
She stated when you sign into one of these prop firms you become part of the company. When you become part of the LLC class A members (who are not you) have complete and utter control of you. When you become part of the LLC there is a part called the Capital Contributions. This is where rules are stated to determine how much Assent LLC can ask you as a member to contribute to the business.
Get this. In the contract, they make you sign a clause that states that you agree to all the terms on conditions in table xx that explain the capital contributions part. Now hereâs the best part.. This table was NEVER included in the sign up packet. I spoke with them and they werenât able to locate this very important missing document. Now if those arenât red flags I donât know what is.
So I had my aunt read the Bright Trading contract. Believe it or not, there is a clause in the Bright trading contract that says something to the effect of âyou are responsible of any penalties incurred by the companyâ I read that and though you have got to be out of your mind. Also, Bright Trading like Assent has complete control, and you must agree that the class A members (again who arenât you) have freedom to change all the terms and conditions of the contract and you must abide by the new rules.
The lady at echo trade informed me that theirs wasnât going to be pretty either.
Well ya know, thatâs my aunt sheâs looking out for me. So I then took it to another lawyer who said the same exact thing as my aunt and completely advised me to stay away from these horrific contracts.
Now it is very unlikely to happen, probably not, I canât imagine the Brights who has TONS of money say, âAll right class B member we need a huge new office building, everyone put up $100,000âYou say Hell no, but you signed the contract and agreed with ever terms and conditions on that damn thing. Now I doubt that, thatâll happen, but I canât stop thinking it is just bad practice to put yourself at the mercy of really people you donât know at all.
Iâm sure that 99% of the people really donât care about what they are signing, and not to sound like an ass, but donât really have that much in assets that theyâre worried about getting a big law suit against them, but this is something that that I take seriously. Iâm wondering, from the ones who have looked into the contract if there is a way to protect yourself, what comes to mind is having your own LLC join the Bright LLC, and have the LLC with limited money. Any advice would be appreciated.
Thanks
I have read this before how these legal contracts that these prop firms make you sign are incredibly one sided. I got the contract from Bright, Assent, and Echo and had my aunt reviewed them who is a lawyer. It is commonly said that lawyers make a big deal out of the smallest things in contracts however; Iâve never seen my aunt react like this. She told me that they have complete and total control and can really tell you to do anything.
She stated when you sign into one of these prop firms you become part of the company. When you become part of the LLC class A members (who are not you) have complete and utter control of you. When you become part of the LLC there is a part called the Capital Contributions. This is where rules are stated to determine how much Assent LLC can ask you as a member to contribute to the business.
Get this. In the contract, they make you sign a clause that states that you agree to all the terms on conditions in table xx that explain the capital contributions part. Now hereâs the best part.. This table was NEVER included in the sign up packet. I spoke with them and they werenât able to locate this very important missing document. Now if those arenât red flags I donât know what is.
So I had my aunt read the Bright Trading contract. Believe it or not, there is a clause in the Bright trading contract that says something to the effect of âyou are responsible of any penalties incurred by the companyâ I read that and though you have got to be out of your mind. Also, Bright Trading like Assent has complete control, and you must agree that the class A members (again who arenât you) have freedom to change all the terms and conditions of the contract and you must abide by the new rules.
The lady at echo trade informed me that theirs wasnât going to be pretty either.
Well ya know, thatâs my aunt sheâs looking out for me. So I then took it to another lawyer who said the same exact thing as my aunt and completely advised me to stay away from these horrific contracts.
Now it is very unlikely to happen, probably not, I canât imagine the Brights who has TONS of money say, âAll right class B member we need a huge new office building, everyone put up $100,000âYou say Hell no, but you signed the contract and agreed with ever terms and conditions on that damn thing. Now I doubt that, thatâll happen, but I canât stop thinking it is just bad practice to put yourself at the mercy of really people you donât know at all.
Iâm sure that 99% of the people really donât care about what they are signing, and not to sound like an ass, but donât really have that much in assets that theyâre worried about getting a big law suit against them, but this is something that that I take seriously. Iâm wondering, from the ones who have looked into the contract if there is a way to protect yourself, what comes to mind is having your own LLC join the Bright LLC, and have the LLC with limited money. Any advice would be appreciated.
Thanks
