Closing a business agreement must be done correctly, if you’re going to protect yourself from unforeseen losses. This is especially true in entertainment law, where individual parties want to protect their creative works. While hiring an entertainment lawyer can help you with this process, you should still be aware of the characteristics of a good business agreement.
Get it in Writing
Handshake deals are a thing of the past. Today, it’s essential to get everything recorded in a written contract. This provides recourse in the event one party tries to breach the deal, while also protecting intellectual properties from unintended exploitation.
Create a Detailed Document
If you intend limited use of your property, that should be detailed in the contract. Any terms or stipulations should be explicitly defined in the contract, as well. Leave nothing up to assumptions.
Specify the Terms
It’s also vital to indicate which party will pay, what they’re paying for, and which party will receive payment. The contract should define the terms of the deal, identifying what the other party will give up in exchange for payment.
Define the Ways in Which the Contract Will Be Terminated
If the contract concerns a one-time use of a product, or service, that should also be specified in the document. The contract should also define the circumstances in which either party can terminate the contract and what consequences, if any, will result from a breach of the contract’s terms.
Working with an entertainment lawyer can help ensure all of the conditions of the arrangement are defined in the contract. This is often the best way to create a binding legal document, which works to protect both parties.