UFC owners Lorenzo and Frank Feritta famously wrote a clause into their shareholders agreement that in the event of a boardroom deadlock, they would have a jiu jitsu fight that would be refereed by their friend and UFC President, Dana White.
Sometimes we see business owners assume that they are better off with their ‘wink and handshake’ deals. They think putting their deals down in writing will be impossible because the law is rigid and so are legal documents and a written contract couldn’t possibly reflect the parties’ intentions.
Ok, we will admit it, there’s usually a form and a pattern and terms that need to be in particular deals. But they are there for a reason, and they are there to protect the parties.
So what about this idea of inflexibility? Well, the law does have room to move. You and the people you do business with can be creative. You can come up with all sorts of ways you want your deal to work. A good advisor will put your grand plans and deals into writing in ways that make all parties clear on their rights and obligations, and you are protected if things don’t go to plan.
Business owners know that deals get done in all sorts of ways. That’s ok – just get them in writing!