What's the point of contracts?
Flipping through Donald Trump's book The Way to the Top: The Best Business Advice I Ever Received I came across this provocative bit from former Vail Resorts CEO and Chairman Adam M. Aron.
As much as possible, deal only with good and honorable people. If you deal with good people, you won't need a contract, and if you deal with bad people, no contract can protect you. Don't worry about contracts.
Really? That's pretty radical advice from a guy who was the Chairman and CEO of one of the most successful real estate/resort development and management companies in history. A "real life" CEO and real estate pro telling people to fire all the lawyers and shred all the contracts. All you need to do is deal with "good" people and you too can become CEO of Vail Resorts.
Did he really say that? Is it really possible or even desirable to avoid having to deal with contracts? Well, in the real estate world, the answer is a resounding "No." There is no good at all that can come from following this advice. Why not?
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