Hi, Me and a couple guys are thinking of pooling some money for the purpose of investing in stocks and other security. Because we know each other in large we decided not to have a formal contract for now to save some money. However, we still want to have some kind of contract or agreement on paper. Does anyone have any experience on his and maybe give me some suggestions where to start? Like is there a proper standard format with key sections or anything? Also is there actually a difference between an agreement form and contract? Just curious. Thanks in Advance
What do you think is the difference between "a formal contract" and "some kind of contract or agreement on paper"? Either you have a written contract or you don't. Fortunately, it sounds like you do want to have a written contract, which is the only sensible thing to do. What you have is essentially an investment club, although you may not run it as such. The best thing is to find an investment club partnership agreement and start from there.
Trust me no matter how good a friends you are when there's large sums of money involved people change very quickly, I've seen it so many times and it can get really ugly.