When do you (a musician) need a contract?
All artists should be using contracts especially musicians. This blog is based on a recent talk I (Michael) gave to a group of musicians in the Balanced Breakfast Meetup Group.
What is a contract/Why Use Them? We have to start with this.
Contracts don’t just get you paid, they your protect intellectual property, discuss liability and dispute methods, and set forth specifics. This is your business and how you do it is important. Not all agreements are contracts but all contracts are agreements. Meaning, we want all of our agreements to be legally enforceable, binding contracts. Contracts make you feel and appear more professional, let people know you are serious, and give you fodder should there be an issue later on. Imagine calling your attorney as someone who has a paper trail vs. someone who has a he/she/they said situation. I promise you, the paper trail/record keeping life will make not just your process better, but mine.
What does a contract need to have in order to be legally enforceable?
Valid Offer and Valid Acceptance ( Together Known as Mutual Assent)
Capacity
Legality
Adequate Consideration
A valid offer is communication that invites the other person to accept. It is communicated in definite and certain terms. Acceptance has to take place by the person who the offer was directed at. It must also take place in a way that the offeror required (ie. call my by 5pm Friday if you accept). Together, these are mutual assent.
Capacity is means that the person you are contracting with is not a minor, is not incapacitated (ie. an illness or mental condition), or is not too drunk or high to understand the situation. Courts of declared that it doesn’t matter whether you’ve been drinking or have a condition. The true test is were you lucid or were you too far gone and didn’t understand what was going on?
Legality is a simple one. Your contract can not be to make meth or to hire a hitman. Most musicians aren’t doing anything illegal in the act of music itself. However, be sure to careful making sure any city or county permitting rules are followed and discussed in the contract.
Adequate consideration is a bargain for exchange or a “quid pro quo.” What is it that I give you and you give me that I already didn’t have. Or what is something you have to do that you weren’t already obligated to do. Even if it’s a dollar, it has to be a dollar that you didn’t already have.
Types of Contracts That Musicians Need
Split sheets/producer agreements
Contractor agreements
Partnership operating agreements
Agreement with a bar/bars
Artist agreement
Recording contract
Licensing agreements
Client service agreement
These are various types of contracts needed. However, in the contract world thousands of contract options exist depending on the parties, subject matter, project, etc.
We have helped many musician clients get their contracts in order. We would love to help more. Please schedule a no cost consult. We’d love to hear from you.