WHAT IS A CONTRACT? A contract is a series of promises between two or more parties. Since it’s legally a binding when you write a contract, you’re creating a law. The law only applies to those who sign it and it will be upheld by court. In order for an agreement to be considered a binding obligation or contract, there are 5 points which must be present:
1) ALL PARTIES MUST BE LEGAL.
2) THE CONTRACT CANNOT CALL FOR ILLEGAL ACTS.
3) THE LANGUAGE MUST BE CLEAR AND UNAMBIGUOUS.
4) THERE MUST BE CONSIDERATION.
5) THERE MUST BE MUTUAL AGREEMENT.
WHAT ARE ORAL AGREEMENTS? There are several reasons why it is better to have a contract in writing, ORAL AGREEMENTS have one distinct advantage over written ones- oral contracts are much easier to enact. When you hand a $20 bill to the gas station attendant and say, “pump 5 please,” you’ve entered into a legally binding contractual agreement. When it comes to dealing with a business deal it is better to get it in writing (CONTRACT). The pitfalls of an oral agreement- regardless of whether it’s legally permissible should be obvious. Even if you’re not worried about the other person lying, he or she may have a different understanding of what you agreed to, or you may forget exactly what was discussed- then it gets very difficult to prove anything.
Here are some basic REASONS of why people go into an agreement/contract.
- Producer/Artist agreement
- Manager/Artist agreement
- Producer/Producer agreement
- Record labels/Artist agreement
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