We always say we aren’t giving legal advice on this blog. Here’s some, though: don’t use or sign a contract given to you by a broker for a transaction, unless that broker is a real estate broker, and unless the form is a real estate purchase agreement. Even then, you almost certainly want lawyer eyes on it.
If a broker is giving you a business agreement to use or to consider using in a cannabis business transaction—even as a template; even with disclaimers—the broker is either a) unscrupulous, or b) naïve, and most definitely c) creating a hazard.
What’s the hazard? For the broker, it’s a somewhat typical penalty here in Oregon: a fine of up to $600, or up to six months in county jail, or both. You can throw in possible professional discipline and/or a lawsuit by the damaged client. For the client, the parade of horribles may include transaction failure, loss of large sums of money, litigation, etc. Damages may also be more insidious, the likes of which the client may never fully appreciate.
In most (all?) states, a broker—or any non-lawyer—providing a contract for a party to use in commerce is too-often engaged in the “unlawful-”
Read full article on HarrisBricken
