While it’s true verbal agreements can be legally binding (it helps if you have witnesses), the gold standard for contracts is the written agreement. This will make things easier in the event there are later discrepancies or disagreements around the terms agreed upon.
It’s also a way to protect both parties from misunderstandings or mistakes due to divergent memories of precisely what was agreed. It’s a known fact the human memory is far from infallible.
(I’ll never forget the time I showed up with my band at a club on a Saturday evening to find an irate Club Owner, furious with us because we were not there the previous night. I had very clear memories of multiple phone calls where we specifically spoke about Saturday, but he swore up and down we were supposed to play on Friday.
Needless to say, we never played there again. This fallout could have been avoided with a simple written contract.)
Some people in the industry will say a simple email with the details should be enough to confirm the terms of an agreement. While a date-stamped email is certainly better than nothing, in a case where there is a serious disagreement or accusations of wrongdoing, it can be hard to prove where the email originated, or that it was not doctored.
For all these reasons, I would recommend you never perform anywhere without a written contract or agreement. Even if there is no money involved, there should be a written “confirmation” or agreement where all details and expectations are laid out clearly. It’s the safest and wisest way to proceed.
It’s important to understand that the best contracts protect both parties. This might be worth mentioning if you are ever asked by a client why it is necessary to have a written contract. It’s not only about trust, it’s also about clarity.
A contract exists to protect both parties. There really aren’t any one-sided contracts worth the paper they are written on. Why would anyone sign an agreement that only protects one side? It’s smart to always try to point out to a counterparty how a contract will also protect their interests.
What type of Music Contracts are there?
While this article deals mainly with live performance contacts, there are a number of different types of Music Contracts used by artists, managers, labels, producers, and others in the Music Industry. These include several different types of Songwriter-Publisher Contracts, such as the Individual Song Agreement, and the Exclusive Songwriter’s Agreement, which are the most common ones in use. Additionally, there are agreements for co-publishing, administration, foreign publishing and distribution, as well as Songwriter/Performer development, production, and joint venture deals.
Besides the Songwriter-Publishing Contracts, there are 360-Deals (see more below), synch licenses (for use of music in visual media), Management Contracts, Booking Agent Exclusive agreements, and other types of Music Licensing agreements which are also a type of contract. The intersection between contract law and music is an interesting area to explore for anyone seeking a sustainable music career.
What is a standard music contract?
While technically there is no such thing as a “standard” music contract, as everything is negotiated, there are some things to watch out for. (Note: It’s best to have a qualified Entertainment Attorney advising you before signing anything, and never sign anything you don’t fully understand.) A recording contract normally has a term (length) of one year.
Other things artists negotiate for is a commitment from the label for releasing some music during the contract term, money to be spent on marketing, a reasonable royalty rate (usually between 6% and 18% depending on the stature of the artist), and the ability for the artist to audit the sales by the label. Artists should also avoid giving the label unlimited deductions prior to calculation of royalties, such as for label operations, salaries, and travel.
Another thing to consider when negotiating a contract is whether or not there is an advance. An advance is when money is paid to the artist up-front, whether to cover recording costs or as a show of good faith. Artists should be careful to not let a sizable advance obscure a stingy royalty rate, as the size of the advance could be compensated for by a lower-than-average rate.