Module 6: Contracts

Objective: fundamental aspects of music and entertainment contract structure

A contract is a legally binding agreement by which the involved parties define their relationship in terms
of purpose, expectations, and responsibilities of each, leading to mutual benefits

 Agreement becomes a contract when offer, acceptance, and consideration are present and
negotiations are finished

Capacity- the ability to establish a contract

 Must be old enough

 Must be mentally sound in understanding what they are entering
 Must not be under the influence of any substance or condition affecting ability to comprehend
actions
 Must not be coerced

For a contract to be in place there must be clear showings of an offer, an acceptance, and consideration
entering the agreement

Offer and counter-offer

1. Contracts should not be assumed to be equal with both parties

2. A contract most likely is written in favor of the party with a higher power position
3. The first draft of a contract should be treated as the beginning of the negotiation conversation
4. Always beware of beartraps in contracts
5. Until the agreement is fully executed, the contract is not yet in place
6. Be sure the person you are dealing with can keep their word
7. You cannot enter a negotiation with a “win at all costs” mindset
8. The end of a contractual relationship should be given the same amount of attention as its
beginnings
9. It is suspicious is a contract requires a payment upfront

Translating a contract

 Wording makes it difficult to track the subject of the provision

1. Separate the provision into separate components of sentences
2. Strike language that is redundant
3. Take away amplifying wordage

Negotiation

 Discuss an appropriate agreement

 In the music industry there is a huge emphasis on relationships because there are always tasks
of working with others, and the music industry world can be very small. Therefore, it is likely
that you will work with the same people multiple times in your career
 Negotiation in the music industry is not much different than negotiations that occur in other
businesses
 Materials and opinions from thousands of sources
 Follow the path that works best for you, it is different for everybody
 Must be open to discovery and insight from others
 The art of contracts are not limited to lawyers