A few days ago we commented on the case of Kanye West and the disclosure of his contract with his record label; oddly enough, we suddenly understood everything he was saying, but it was hard to believe that an artist of that magnitude would have signed something he didn't even understand. We also realized two things: we do not know what to take into account in a contract and for which trades there should be a contract.
This talk curiously coincides with a case we have been dealing with, where one of our artists was about to lose his recordings on digital platforms, just because he did not have a contract.
In an artist like Kanye West it is hard to give credit to this kind of omissions because there is a legal team behind, that should review and approve these issues, but within the independent scene in general is a very recurrent practice: making contracts or agreements in good faith, based on somebody´s word, mostly because musicians can't afford advice or simply because they delegate these issues to their close ones (who regularly do not charge) and it is applied to all the activities they perform as a musical project.
Another of the toughest examples is the one of our own CEO, Gilberto Avalos, who in his beginnings, carried away by the emotion and desire to share his art, ceded the right to his music and half of his royalties for 25 years and although it was a very difficult experience, thanks to this Indiefy exists.
We should not demonize the experiences, it is much better to share them, break them down and find all the information that will help us understand what our rights are and how to make the best compromises.
Throughout this series of blogs, I will tell you what are the most important aspects to read and consider before signing a contract, as well as the different types of agreements that are handled in this business of the music industry.
IS MY CONTRACT VALID? HOW CAN I KNOW?
The validity of a contract is based on what is known as contract law, which is nothing more than a series of formalities that legalize it before the law, obliging its fulfillment.
The structure of a contract must include these conditions to guarantee its validity.
OFFER.
The offer is the objective of the contract, it is what both parties can do for each other as long as it is binding, for example: recording of albums or singles, distribution, management, promotion, etc.
ACCEPTANCE.
Right next offer is acceptance. Once the agreements have been consensually reached by both parties, the "closing of the deal" takes place, which is the concrete action to be carried out, represented by the signatures.
CONSIDERATION.
This part is what we know commonly as "the deal". It is what each side offers as retribution and that will benefit in some way to the other, be it money, payments in kind, or extra activities.
The consideration is a part that should only be fixed by the parties involved.
CAPACITY.
For a contract to be fully executed, certain conditions must be met by each party involved, so that in the future it cannot be nullified by legal breaches, for example, that the parties are of legal age, that they are in full use of their mental faculties, etc.
LEGALITY.
Last but not least, everything that we stipulate in a contract, must adhere to the law of the territory where it is signed and where it will be executed, taking care not to fall into any crime unconsciously.
This is the main structure that a contract must contain regarding legal matter, that is fulfilled will guarantee that there will be no inconveniences or unexpected terminations. Please have in mind that this article contains useful information about contracts but it does not replace the advice of a professional lawyer with knowledge and experience in the legislation and/or regulations within the country where you reside or make business.
In the next post, we will see which are the important clauses to read, review and negotiate in a contract, so stay tuned.
Remember that Indiefy offers you an option at any time of your career, our free digital distribution plan can be a great start for your project, it will be a pleasure to help you.
If you need more information please contact us at indiefy.net.
See you in the future!
