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| A Shocking Way Out Of A Contract - Maybe | |||||||||||||||||||||||||||||||||
 Whether
you're a business-person or a creative talent (or both), you need to be aware of a little-known legal concept called "unconscionability." Unconscionability means that the terms of an agreement are so bad and one-sided that they "shock" the conscience of the court. Believe me. You don't want to shock the court if you're a record label, publisher, agency, management or production company. If you're the talent and you're stuck with a bad deal, then you better hope that the court gets shocked out of its wits. |
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| Why? If the court gets shocked, it will refuse to enforce the agreement. | |||||||||||||||||||||||||||||||||
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If you're the company... I represent you by doing everything I can to write up contracts that are satisfactory to you. But there's more to it than just taking your business terms and turning it into legalese. I have to help you strike a balance in how the deal is structured and how the contractual language is presented. The contract has to aggressively protect your interests. But it can't go overboard and become unconscionable or we run the risk that a court may get shocked and strike it down. |
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If you're the talent... I represent you by determining if the contract you were offered has any unconscionable clauses. It's one of the first things I look for. If I'm negotiating the contract, then those clauses are the ones that I pick apart. I demand that the other side eliminate or rewrite these terms. If you're coming to me with a bad contract you already signed, then I look for unconscionable clauses as a way to get you out. |
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| Don't think it will be easy for you to judge whether a contract is unconscionable. This is where legal experience comes in. | |||||||||||||||||||||||||||||||||
| Courts in the U.S. and the U.K. recognize that the music business is very uncertain and has a high risk of failure for new performers. So even though the contracts favor the company, the courts won't automatically reject the contract as being unfair. To shock the court, the terms have to be so one-sided that they "grossly" differ from industry norms. | |||||||||||||||||||||||||||||||||
| So just because the terms shock you doesn't mean it's bad enough to shock a court. And just because the terms don't shock you doesn't mean that a court will uphold the agreement. | |||||||||||||||||||||||||||||||||
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| Have questions about this topic? Do you need contracts prepared? Have you been offered a deal? Having second thoughts about something you signed? E-mail me about setting up a consultation. | |||||||||||||||||||||||||||||||||
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Not sure yet? Have
questions about the fee or services? E-mail me to arrange for a free confidential telephone appointment to get more information. |
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> invited
to The Circle,
