Question
I signed a contract using KISS - it´s a standard template used for early stage startup to receive investments. You can find the contract on the links below. The contract is governed by the law of California however, I, the investor resides in Canada whereas the founder resides in Israel and neither of us have any physical tie to the usa at the moment.
Investor location: Canada
Founder location: Israel
SAFE is another contract that was considered in the negotiation.
** subquestions: **
*1 - Should the contract abides by the country of residence of the investor or the founder?
*2 - Could we use SAFE(y-combinator template) or KISS(500 startup template) documents if neither the investor nor the entrepreneur resides in US?
*3 - If we used SAFE(y-combinator) or KISS(500) document out of ignorance and sent/received the invesment, is the contract still valid?
*4 - if the contract is not valid but the fund were sent/receive, should a new contract be negtotiated and the fund returned to the owner?
SAFE contract link: https://www.ycombinator.com/docs/SAFE_Cap_Discount.rtf
KISS contract link:https://500startups.app.box.com/s/wxkh7gqyqsfmoxixk7vm
I plan on hiring a lawyer. However, I wanted to be better informed and save some $ if possible.
Answer
The contract is governed by the state in which the "Subject" of the contract will operate
If the Subject should change operating location then the governing body changes. This applies to state laws of course, but not federal laws for obvious reasons.
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