The Holidays are here! Tis’ the season!
In honor of the holidays, I’d like to share a few tips with you to make sure you go into the new year with new knowledge. Instead of the 12 Days of Christmas, I present to you — The 12 Days of Contracts! Yes, I’m a legal nerd!
On the first day of Christmas, my client gave to me, a contract with a licensee… (Mel’s 12 Days of Contracts – The Remix) (c) 2021
In these 12 days, I will share some contract basics, so you can be more informed on terminology and what a proper contract needs to contain to make it valid and enforceable.
Knowing complete parties might seem like easy or trivial details, but it is often overlooked. In the event there is a dispute with the contract, you will need to know, and make sure in the contract, that the proper individuals and/or companies have been identified and included.– Melanie Rodriguez
Who are the parties to the contract?
The first thing you should know and have researched is who are parties signing the contract? Easy right? Not always! This is the most basic step that needs to be accurate and complete. This is what preserves your ability to bring in these parties in the event of a dispute or lawsuit.
Questions to ask:
- 1) Who are the complete parties to the contract?
- Use legal names, correct name of any companies, correct designation of the company (LLC, Corporation, etc.) and correct contact information. .
- 2) Research all parties involved so you have an understanding of who is on the other side of the table.
- Who is the agent, attorney, and manager? Is this individual who he/she says they are? Does this company exist? You can find information about companies on your state’s Secretary of State website.
- 3) Are parties signing as individuals or collectively?
- This is important, for example, when signing a band or a partnership. Are the band members going to sign as individuals or as the band collectively?
- 4) Is any party signing on behalf of a company?
- If the individual wants to sign on behalf of a company, this information needs to be clear. Is there a loan out that is signing on behalf of the artist? I’ll cover loanouts at a later time, but still it’s important to understand this distinction.
Knowing complete parties might seem like easy or trivial details, but it is often overlooked. In the event there is a dispute with the contract, you will need to know, and make sure in the contract, that the proper individuals and/or companies have been identified and included.
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