App444
Before you start

Six things to agree in writing before anyone does any work.

This is not a contract and there is nothing here to sign. It is the list of questions that, left unasked, is what actually breaks projects apart.

App444 is not part of your agreement. We introduce people to each other. We do not check anyone, we do not hold money, we are not a party to what you agree, and we cannot enforce it. What the two of you decide is between the two of you.

Written down does not mean expensive. An email that both people reply “agreed” to is written down. A shared document with both names and the date is written down. What matters is that in six months there is something to read instead of two different memories.

The six

1

Who owns what gets made?

Code, designs, copy and drawings belong to the person who made them unless something in writing says otherwise. Paying someone does not automatically change that, and neither does promising them equity.

What going wrong looks like

A developer builds the app over four months for a share of the company. He leaves after a disagreement. He still owns the code. The founder cannot legally ship it.

Decide together
  • ·Does the work belong to the project from the moment it is made, or does it transfer at some point?
  • ·What happens to work already done if the person leaves early?
  • ·Can they reuse parts of it on other jobs?
2

What exactly is each person getting?

"Equity" and "a share" are not amounts. Two people can shake hands on the same words and mean numbers that are ten times apart.

What going wrong looks like

The founder means 5% once the company is registered. The contributor understood 20% starting immediately. Neither wrote it down. Both are certain they are right.

Decide together
  • ·A number, not a word. What percentage, or how much cash, or what mix?
  • ·Paid or issued when? On signing, monthly, or after something specific happens?
  • ·If there is no company yet, what happens when one is registered?
3

What has to actually be delivered, and by when?

Without this, nobody can tell the difference between someone who is behind and someone who has quietly stopped.

What going wrong looks like

Three months pass. The founder thinks the app is nearly finished. The contributor thinks they agreed to "help out when free" and has done six hours.

Decide together
  • ·What does done look like — a working screen, a launched page, ten customers called?
  • ·How many hours a week, roughly?
  • ·What date is the first checkpoint?
4

What happens when someone wants out?

Most of these arrangements end early. That is normal and not a betrayal — but if the ending is not agreed while everyone is still friendly, it gets agreed while everyone is angry.

What going wrong looks like

A contributor with 20% stops replying after month two. Years later the company raises money and he still owns 20% for two months of work.

Decide together
  • ·How much notice does someone give?
  • ·Do they keep everything they earned, or does unearned equity come back?
  • ·Who tells the rest of the team, and what is said?
5

What must stay private, and for how long?

Some of what a contributor sees is genuinely commercially sensitive. Some of it is not. Agreeing which is which prevents both a real leak and an unfair accusation.

What going wrong looks like

A contributor uses the same general approach on an unrelated job. The founder believes the idea was stolen. Nothing was ever written down, so neither can prove anything.

Decide together
  • ·What specifically is confidential — customer lists, pricing, the code, the plan?
  • ·For how long after they leave?
  • ·What are they clearly free to reuse? Their own general skills always are.
6

If you disagree badly, what happens next?

Deciding this in advance is what keeps a disagreement from becoming a court case. It costs nothing to write and it is the line people are most grateful for later.

What going wrong looks like

A $4,000 disagreement turns into $40,000 of legal fees, because neither side had agreed on a single step to take before "see you in court".

Decide together
  • ·Who do you both talk to first — a mutual contact, a mediator?
  • ·Which state or country’s law applies?
  • ·Are you willing to try mediation before anything else?

When to get a lawyer

Plenty of small businesses start on a clear email between two people who trust each other, and never need more than that. But there are three moments where the cost of being wrong jumps, and a one-off review by a real lawyer is worth it:

  • ·Real money starts moving — wages, investment, or customers paying.
  • ·You are agreeing something with a person you do not know and cannot simply ring up.
  • ·Someone is putting in something they cannot get back: months of full-time work, savings, or their own existing intellectual property.

Ask for a fixed-fee review rather than hourly work. You are asking someone to read a short agreement once, not to represent you.

Nothing on this page is legal advice. App444 is not a law firm and cannot give you any. These are the questions to take to a professional, or at minimum to answer honestly with each other in writing.