The ongoing legal dispute between Brad Pitt and Angelina Jolie over their French estate and winery is a reminder of the importance of having clear operational agreements in place for any business.
In this case, Pitt and Jolie reportedly agreed that neither would sell their shares in the winery without the other's consent. However, Jolie went ahead and sold her shares to a third party, which led to Pitt suing her.
This case highlights the importance of having clear and unambiguous agreements in place that outline the rights and responsibilities of each party. These help to avoid future disputes and ensure that both parties are treated fairly.
Here are some of the key benefits of having operational agreements:
- They can help to avoid disputes. When there is a clear understanding of the rights and responsibilities of each party, it is less likely that there will be disagreements or misunderstandings.
- They can help to ensure that both parties are treated fairly. With everything in writing, it is clear what each party is entitled to, which can help prevent one party from taking advantage of the other.
- They can help to protect the business. If the entity is ever sold or dissolved, the operational agreements can help to ensure that the sale or dissolution is handled in a fair and orderly manner.
If you are a business owner, it is necessary to have easily understood operational agreements. This will help to protect your business and your interests in the event of a dispute.
Here are some tips for drafting operational agreements:
- Be clear and concise. The agreements should be easy to understand and not open to interpretation.
- Include all of the pertinent details. The agreements should cover all of the key aspects of the business, including the rights and responsibilities of each party, the financial arrangements, and the dispute resolution process.
- Have the agreements reviewed by an attorney. It is paramount to have the agreements reviewed by an attorney to ensure they are legally sound.
By following these tips, you can help to ensure that your business will be protected with practical operational agreements. If you have questions, feel free to contact us.