Posts Tagged ‘Drafting’

Who Needs Legalese?

Thursday, January 30th, 2014

By Brian Taylor Goldstein, Esq.

 

Dear Law and Disorder:

I need to add language to a contract that says that if we have to reschedule due to snow, we have the right to do so. What language do I need?

You need language that says: “If we have to reschedule due to snow, we have the right to do so”

Seriously, you don’t need legalese. You only need English. There are many people who believe that drafting a contract involves taking something simple, adding a lawyer, and producing something no one can understand. In truth, most legalese is really just bad writing. On the other hand, what people often mistake as “legalese” is really additional details and specificity that they may not have thought of. Whereas lawyers tend to take simple concepts and mangle them into undecipherable run-on sentences and tortured verbiage, normal people, in an effort to avoid legalese, all too often over-simplify complex concepts, leave important terms undefined, or exclude critical clarifications.

The sole point of a contract is to convey the terms that will govern a relationship as accurately and completely as possible so that all the parties can have an opportunity to review and evaluate all the various aspects of their relationship—ideally, before agreeing to enter into the relationship. This should include explanations of nuances and details. Too often, its not help with the language people need, but help sorting through the details. Such details, however, need not be buried beneath piles of arcane and confusing terminology. Rather, they just need to be spelled out.  For example, in your case, do only you have the right to cancel due to snow? What if the other party is snowed in? Can they reschedule, too? Is this limited to snow? What if the problem is ice, not snow? Or a flood or storm? Who gets to decide the reschedule date? What if the other party already is booked to do something else on that date? What if you have already booking a flight and will incur a fee to change it? An equally simple way of phrasing your right to reschedule, but which addresses all of these details, might be as follows: “Either party shall have the right to cancel due to inclement weather. In such case, the parties agree to reschedule on a next mutually available date. Each party will bear its own expenses incurred in the event of such rescheduling.”

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For additional information and resources on this and otherGG_logo_for-facebook legal and business issues for the performing arts, visit ggartslaw.com

To ask your own question, write to lawanddisorder@musicalamerica.org.

All questions on any topic related to legal and business issues will be welcome. However, please post only general questions or hypotheticals. GG Arts Law reserves the right to alter, edit or, amend questions to focus on specific issues or to avoid names, circumstances, or any information that could be used to identify or embarrass a specific individual or organization. All questions will be posted anonymously.

__________________________________________________________________

THE OFFICIAL DISCLAIMER:

THIS IS NOT LEGAL ADVICE!

The purpose of this blog is to provide general advice and guidance, not legal advice. Please consult with an attorney familiar with your specific circumstances, facts, challenges, medications, psychiatric disorders, past-lives, karmic debt, and anything else that may impact your situation before drawing any conclusions, deciding upon a course of action, sending a nasty email, filing a lawsuit, or doing anything rash!

 

 

Don’t Be Late For Dinner

Thursday, January 16th, 2014

By Brian Taylor Goldstein, Esq.   

Dear Law and Disorder,

About six months ago, a venue booked one of my artists and then sent me a signed contract with language requiring the artist to arrive the day before the concert rather than the morning of the concert. The venue was not willing to pay for an extra night of hotel and the artist already has a concert booked the night before, so I struck the language, signed it, and sent it back. The presenter never said anything, but now they are claiming that they never read the contract after I sent it back and are insisting that either the artist arrive the day before or else they will cancel. They claim that this policy is necessary to protect them from a cancellation in case it snows and the artist can’t arrive. The concert is in one month. Are they correct? Do they have the right to cancel?

You had every reason to object to this the language. There are many reasons for an artist to arrive the day before a concert—such as rehearsals, flight schedules, or travel time—but merely allaying the venue’s fears of a weather-related cancellation are not among them. Even if the artist didn’t already have a concert booked for the prior evening, he is being asked to give up what could otherwise be a bookable performance date as well as to incur his own hotel expenses. That’s unreasonable. It’s like inviting someone to dinner, but insisting that they arrive five hours early and wait outside while you cook. However, when you crossed out the language, signed the contract, and sent it back, your actions constituted a counter-offer, potentially rendering the contract null and void.

To make a binding, enforceable contract, all the parties must agree to the same terms at the same time. If one party changes anything in the contract and the other party does not expressly agree to such changes, then the contract is void. This is why, as a general rule, it is unadvisable for one party to send another a signed contract until after all parties have had a chance to discuss and negotiate all the terms. Instead, whoever is drafting or initiating the contract should send an unexecuted draft of the “proposed” contract to the other party. The contract should then be executed only after all discussions, negotiations, and final changes (if any) have been agreed upon.

In this case, you should have contacted the venue and discussed your objections before unilaterally editing the contract or striking the objectionable language. Nonetheless, by not objecting to your changes, by relying on the fact that your artist had scheduled their concert on his calendar, by waiting six months, and, presumably, by advertising and selling tickets to the concert, the venue accepted your counter-offer and the contract became legally binding. As far as their claim that they didn’t notice your changes and just assumed you had signed the contract, that’s their problem. Never assume. Consequently, under the terms of the contract, the artist is not required to arrive the day before, so the presenter has no right to demand that he do so. If the presenter were to cancel at this stage, it would constitute a breach of contract.

While a legal analysis is always only half the analysis, and all reasonable solutions should first be explored, should the venue cancel the engagement, it would be liable for the artist’s full engagement fee. Cancellation insurance would probably have been a simpler and more cost effective alternative.

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For additional information and resources on this and other GG_logo_for-facebooklegal and business issues for the performing arts, visit ggartslaw.com

To ask your own question, write to lawanddisorder@musicalamerica.org.

All questions on any topic related to legal and business issues will be welcome. However, please post only general questions or hypotheticals. GG Arts Law reserves the right to alter, edit or, amend questions to focus on specific issues or to avoid names, circumstances, or any information that could be used to identify or embarrass a specific individual or organization. All questions will be posted anonymously.

__________________________________________________________________

THE OFFICIAL DISCLAIMER:

THIS IS NOT LEGAL ADVICE!

The purpose of this blog is to provide general advice and guidance, not legal advice. Please consult with an attorney familiar with your specific circumstances, facts, challenges, medications, psychiatric disorders, past-lives, karmic debt, and anything else that may impact your situation before drawing any conclusions, deciding upon a course of action, sending a nasty email, filing a lawsuit, or doing anything rash!

 

Its Not The Length Of A Contract That Matters, Its How You Use It

Wednesday, August 14th, 2013

By Brian Taylor Goldstein, Esq. Dear Law and Disorder: I want to start getting the artists I represent to sign a written representation agreement. However, all of the models I have found are too long and complex. I definitely do NOT want a 14 page contract, more like 4 or 5 at most.  I won’t be able to get folks to sign it otherwise!  And, can the language be more simple? I like simplicity. When drafting contracts, length and simplicity should be the least important factors. Such restrictions are arbitrary. That’s like saying: “I want to drive from New York to California, but I absolutely refuse to use a car that requires tires or gas.” You’re going to have a problem satisfying your travel needs and goals. The goal of any contract is not to make it simple enough so everyone signs it. If that’s your goal, you really only need two sentences: “I agree to book engagements for you. You agree to pay me.” Let’s assume both parties sign it. What if the artist doesn’t pay you or leaves you for another agent? Contracts are not self-enforcing. If one party breaches a contract, then merely having a signed contract is not going to force them to comply. You have to file a lawsuit to enforce a contract. That’s expensive…and often pointless if the artist has no assets. Worse, if your contract is too simple and doesn’t adequately address the nature of the dispute, then the other side’s attorney is going to poke all sorts of holes in your “simple agreement” and you’re going to lose anyway. The goal of a contract is having a document that adequately addresses your concerns and issues and spells out all of the key terms so that you and your artist have a chance to review and discuss them. A meaningful contract will assist both parties in routing out any presumptions or misunderstandings before problems arise. Whether it takes 4 pages to do that or 14 pages, the length of your contract will depend on the complexity of the relationship, the length of the relationship, the needs and concerns of the parties, the amount of money at issue, and a myriad of other issues. For example, if an agent takes a commission of 20% off everything they book for the artist, do you earn your commission when the engagement is booked or actually performed? Does “everything” include 20% of reimbursements for travel and hotel expenses? Are you exclusive? Do you get a commission on engagements that the artist books on their own? And when do you get paid? And how do you get paid? Are engagement fees sent to you or do you invoice the artist? What about engagements that happen after the term? How long is the term? Can you cancel? Can the artist cancel? What if the artist decides to cancel and goes to another agent? Are you still entitled to the commission on engagements you booked? And the list goes on… Think of your contract as a checklist that you will use to facilitate a discussion with each new artist you bring on to your roster to help you decide if you want to work with them and vice versa. If there are issues that are not important to you, then you can take them off your list and remove them from your contract. However, if there are expectations or requirements that are important to you, those need to be adequately explained and detailed. Similarly, while the language you use to explain your expectations and requirements can be simple, it also needs to be appropriate. While I am the first to criticize attorneys for using overcomplicated legal babble, more often than not, a lot of language that confuses artist and agents in contracts is not necessarily “legalese”, but basic business terms and practices with which they are not familiar. Let’s face it…a lot of artists as well as agents, managers, and presenters, do not necessarily have the same business background and training as do entrepreneurs and business people in other, less fulfilling industries. That merely means there are new terms to learn, as opposed to avoid, as your business grows and matures. My point is that your focus needs to be on finding the right language to adequately explain your terms, concerns, expectations, and requirements. I’ve seen too many parties get burned because they dumbed down a contract just to make it shorter. That’s a waste of both time and money. More important, in my opinion, arbitrarily “dumbing” down a contract merely on the assumption that artists won’t understand anything more complex does a disservice to the all the inherently bright, creative, and intelligent denizens of our arts industry who merely need an opportunity to be taught. __________________________________________________________________ For additional information and resources on this and other legal and business issues for the performing arts, visit ggartslaw.com To ask your own question, write to lawanddisorder@musicalamerica.org. All questions on any topic related to legal and business issues will be welcome. However, please post only general questions or hypotheticals. GG Arts Law reserves the right to alter, edit or, amend questions to focus on specific issues or to avoid names, circumstances, or any information that could be used to identify or embarrass a specific individual or organization. All questions will be posted anonymously. __________________________________________________________________ THE OFFICIAL DISCLAIMER: THIS IS NOT LEGAL ADVICE! The purpose of this blog is to provide general advice and guidance, not legal advice. Please consult with an attorney familiar with your specific circumstances, facts, challenges, medications, psychiatric disorders, past-lives, karmic debt, and anything else that may impact your situation before drawing any conclusions, deciding upon a course of action, sending a nasty email, filing a lawsuit, or doing anything rash!

How Do I Draft An Engagement Agreement For My Trio?

Wednesday, May 16th, 2012

By Brian Taylor Goldstein

Dear FTM Arts Law,

I am a manager who will be writing contracts on behalf of a trio. They don’t have a corporation and there is no “leader.” They just get together and perform together. How do I handle their engagement fees so that I do not look like their employer? None of the three wants to collect the money on behalf of the others. So, that leaves me to disperse the money.  I know I must be careful not to appear as a producer or employer, so I want to be sure that I write my contracts properly, as well, handle the payment of fees.  So, when writing the actual contract, do I make it out between all three musicians and the presenter?  What if one of them is paid to his/her corporation? Does this make sense?

This makes absolute sense…and the answer is pretty easy! You want each engagement contract to be between the presenter and each of the individual members of the trio. Something like this: “Presenter hereby engages Musician 1, Musician 2, and Musician 3 to perform at ___________.” The same engagement contract would also specify that the engagement fee would be paid directly to you “as the agent of Musician 1, Musician 2, and Musician 3.” You can even sign the engagement contract, provided it is clear that you are signing “as the agent of Musician 1, Musician 2, and Musician 3.” (I know, you said you were their “manager”, but “manager” is a title that describes your duties. For purposes of determining liability, fiduciary duties, and other legal obligations, managers and agents are both legally considered to be “agents”).

Once you collect the fee, you can pay each of the artists directly. For you purposes, it doesn’t matter whether you pay an artist individually or pay the artist’s corporation. Nonetheless, you must issue a 1099 for the FULL FEE. In other words, if the total engagement fee is $3000, and you take a 20% commission, and everything is split evenly, then you would pay each artist $1000 and deduct a commission of $200 from each payment—but you would also issue a 1099 to each artist for $1000. Why? Because you are working for the artists, they are not working for you. If you don’t want to be perceived, either for liability or tax purposes as their employer or producer, then you need to set up the transaction so it is clear that it is the artists are paying you and you are not paying them. Technically, each artist should issue you a 1099 to reflect that they paid you a commission of $200. However, in my experience, as artists are even more adverse to paperwork and forms than managers and agents, it is highly unlikely that the artists will actually issue you the 1099. It doesn’t matter. You would hardly be the first person who received a payment without an accompanying 1099.  So long as you have issued a 1099 to each artist for $1000 and report your commissions on your income taxes, you are fine. It may drive your accountant a bit nuts, but they’ll deal with it!

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For additional information and resources on this and other legal and business issues for the performing arts, visit ftmartslaw-pc.com.

To ask your own question, write to lawanddisorder@musicalamerica.org.

All questions on any topic related to legal and business issues will be welcome. However, please post only general questions or hypotheticals. FTM Arts Law reserves the right to alter, edit or, amend questions to focus on specific issues or to avoid names, circumstances, or any information that could be used to identify or embarrass a specific individual or organization. All questions will be posted anonymously.

__________________________________________________________________

THE OFFICIAL DISCLAIMER:

THIS IS NOT LEGAL ADVICE!

The purpose of this blog is to provide general advice and guidance, not legal advice. Please consult with an attorney familiar with your specific circumstances, facts, challenges, medications, psychiatric disorders, past-lives, karmic debt, and anything else that may impact your situation before drawing any conclusions, deciding upon a course of action, sending a nasty email, filing a lawsuit, or doing anything rash!