|Thinking of entering an informal Lotto Syndicate agreement? |
WRITING A CONTRACT IS YOUR BEST DEFENCE
If you have something in writing it doesnít necessarily have to be a detailed manifesto or an email. But it could be useful later on if you need to rely on a specific document in court if arguments develop... which they do with regular monotony.
If you have an agreement with someone whether itís written or verbal and you breach that agreement then that person might bring a breach of contract claim against you and other members of the syndicate. Legal fees could run into millions of dollars.
If the lotto syndicate goes pear shaped it then becomes the courtís job is to identify whether a contract was formed, identify the terms of the contract and if there has been a breach of that contract between the Lotto Syndicate members the court will decide.
The court can then provide damages and compensation to the person/(s) that has been aggrieved by that breach.
The bad news is how you deliver that information. If parties are not able to clearly point out or identify what the terms of the agreement were, then things get a little murky while legal costs can quickly start eating up any surplus money that is being argued over.
Really... it's common sense to get those simple ideas and putting them down in writing now BEFORE you start a Lotto Syndicate with co-workers or friends and neighbours which could save a lot of headaches and massive legal bills later on let alone losing lifelong friends with arguments over money and who gets paid what.
To ensure your lotto syndicate agreement is water tight go to a lawyer and get him to write one up that names all the parties in the Lotto Syndicate you are taking out which protects you and your co syndicate members from legal challenges after winning a major prize.
VERBAL CONTRACTS ARE BINDING, BUT THERE WILL BE LEGAL STRINGS ATTACHED
The question is going to be proving what has been said. The problem with verbal contracts is it can be very imprecise and very difficult to prove. It becomes your word against someone else's word. It becomes very difficult in most circumstances for the court to determine what was spoken about and what actually occurred. The court may enforce something that is totally wrong in the eyes of the defendants. The results invariably cause ill feelings and hatred to other members of the syndicate
Thatís the risk you take if you don't have a properly laid out agreement between the co-workers/friends/relatives that has been duly signed and witnessed correctly. If you have a verbal agreement and thereís lots of ambiguity about it, to prove it in court later on how are you going to do it? You may even lose the bulk of your share trying to defend things in court.
Youíre potentially talking about a life changing large sum of money. Large sums of money often bring out the worst in people. Ambiguity over who paid what or what was going to happen if the jackpot went to your syndicate, thatís when it starts to become extremely difficult.
Itís like a lot of things with law, most of the time these issues don't come up. However, when things do go wrong and they do habitually, its about protecting yourself to make sure the terms of the agreement are clear and have been agreed to and signed and witnessed BEFORE taking out an informal syndicate.
A properly laid out legal agreement is THE BEST protection you can have.
So make it easy on yourself, your friends and your colleagues.
Simply join a licensed Lotto Syndicate from the start knowing you are fully protected under the UK Gaming Act with a licensed operator.
Common questions in regard to Lottery Syndicates. Do we need a contract for our lottery syndicate? We have a syndicate of six people who play the National Lottery and each week a different member buys the tickets with prize money being shared amongst us. At the moment we do not have any formal document. Is a formal syndicate document necessary? It's not particularly that so much we think a member with a winning ticket will keep the winnings, our main concern is tax liability. In the event of a large lottery win what are the tax implications of sharing prize money amongst the syndicate with or without a formal document in place?
There are no worse disputes than those that erupt between friends over money and who is meant to pay the tax if any. It is a wonderful way to destroy friendships when large sums of money are being divided up. The bottom line is that you need to get a formal syndicate agreement in place as soon as you can if you want to ensure there are no future disagreements over winnings.
Do it sooner rather than later or simply register with LottoSpring.com and have your lottery syndicate handled legally by a UK Licensed Gaming Operator.
No arguing over money nor worrying about who has paid what and who hasn't. It's all done automatically for you when you join a legal syndicated e-lottery syndicate system.
UK Gaming Licence Number 44791.