Trust and Due Diligence

N

nguittar

This thread was started in response to the Mobley - Dr. Van Tharp fiasco refered to in "Psychology" under "Seeing a psychologist". The situation involved Dr. Van Tharp trusting a long time client, who while pretending to be honest and successful, was actually a con artist.

This is a difficult situation, because "Friendship and Trust" are no substitute for "Due Diligence". Right now, I am involved in an investment situation with a friend, and in my attempt to do my due diligence, I may well lose a friend and an investment opportunity.

With an acute awareness of the "Mobley Situation" I have insulted a friend by insisting our Contract clearly spell out an important detail. He thinks I don't trust him - I wouldn't be trying to do business with him if I didn't trust him, but there is no excuse for the contract being vague about critical details that we both agree on.

Please feel free to comment on either this situation in particular, or the Trust - Due Diligence" dilemma in general.

Norm
 
If he's insulted because you want the details you're concerned about to be "spelled out", then perhaps you're not so far off the mark regarding the trust issue.

Which is more important, his friendship or your money? It's been suggested before that one should consider a loan to a friend or family member to be a gift, as it's less likely to be paid than a loan to someone who's only an acquaintance, much less a stranger.

--Db
 
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