Shakira sued for $100 million over oral agreement

By Pankaj Ladhar of Manos • Alwine P.L.

You would think that if millions of dollars were hanging in the balance, the parties to a contract would want to get their agreement down in writing.

But that apparently is not what happened with Shakira and her former business manager, who was also her boyfriend. The former manager recently sued Shakira, claiming that she owes him nearly $100 million by the terms of a contract that, apparently, was strictly oral.

The former manager alleges that he used his business skill and management expertise to help Shakira recover from disappointing album sales by getting her to record her smash hit “Hips Don’t Lie,” which went to the top of the charts in 25 countries, and “Waka Waka,” the official World Cup anthem. Those successes helped Shakira snag a $300 million concert deal with promote and organizer Live Nation.

In a separate case, Shakira has sued the former manager for “misappropriation of funds.” She has alleged that he paid himself unauthorized bonus and used Shakira’s personal funds to pay for his own expenses.

The reason this entertainment dispute caught our eye is the fact that it seems Shakira and her then-manager did not commit their agreement to writing. That certainly is not advisable for anyone, and it is hard to conceive of how no one ever told Shakira and her manager that they ought to.

Getting any sort of agreement you make in writing is always a good idea. Of course, you hope that there is never a reason for an argument to rise over it, but you never know.

Source: BBC News, “Shakira sued for $100m by former boyfriend,” Dec. 2, 2012

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