Contracts...

Posted by Frank Meek 
Contracts...
June 01, 2007 06:40PM
Hi there,
I've been working for some years with a handshake, a wink and a simple contract for customers who have been honest, (for the most part), and as casual as I in business. BUT, I am entertaining a client of whose motives I am less charmed. And, in short, I need a functioning, well-wrought and encompassing contract format if I am to continue with this potentially profitable edit.
Is there a source for "generic" post production contracts? Or, am I faced with the daunting task of searching out an "entertainment" attorney who I would suppose is a rare beast in my neck of the woods?
I checked the FAQ's and the "search" engine but saw nothing on this.
Any ideas are welcome. Thanks.

FE Meek
Re: Contracts...
June 01, 2007 07:08PM
What is your "neck of the woods"? I would get a Lawyer if I were you. Different states have different laws for the Entertainment Biz. You can start right here:

[www.lawyers.com]

Best to go "by the book" when dealing with legal matters, IMHO. Use a Lawyer.

- Joey

When life gives you dilemmas...make dilemmanade.

Re: Contracts...
June 02, 2007 11:11AM
Hi there,
My "neck of the woods" for this edit is Idaho and my chances of finding a media savvy attorney here are remote, at best. Also, this is an area which is in many respects still run by folks who see laws as enemies of the people and rules as things to which one must abide "when you travel elsewhere." If I were home in Colorado, this would not be an issue.
So, I suppose I will craft something from Litwak's book on entertainment contracts and hope for the best...and put a "sixshooter" on the signing desk.
Thanks

FE Meek
Re: Contracts...
June 02, 2007 11:48AM
Good luck.

When life gives you dilemmas...make dilemmanade.

Re: Contracts...
June 02, 2007 04:50PM
Hi Frank,


I'm not a lawyer, so take this for what it' worth. However I've been through "Hard Knock University" - Many years ago, I learned the hard way, (Lost EVERYTHING!) how important contracts are.

More recently, I've lost a good number of good clients over the years because they didn't understand some important things about contracts. If they had only taken the time and resources to get good contracts, they'd still be in business today.

Here are a few things I've learned which might help:

(1) Whether or not you think you have a contract, you have one:
The minute you agree to do work for someone - to provide something of value in exchange for something else (consideration) you have a binding legal contract. The problem is that, until both you and your client have negotiated and recorded all of the important details, neither side has any protection from, or even understands, the other party's expectations.

(2) Contracts are for honest people:
If someone intends to rip you off, and doesn't care about the consequences of doing so, no contract will protect you. A good test, though, is to find out if your client is willing to sign a good contract - If they won't, you're in trouble. If they use the "I've been through the lawyer thing before and (insert problem here)..." and assuming they are honest types, you're dealing with people who don't understand basic principles of business - you've still got a problem.

(3) Most honest people will forget what they agreed to in the first place:
One of the primary reasons to write a contract is so that, if there's a problem (and on a big project, there WILL be a problem of some sort.), both parties can refer back to the contract so they can be reminded of what they originally agreed to. Before I started doing full time what I do now, after my big legal disaster, I worked freelance as a corporate producer, writer, audio producer, etc. and I always arranged for a good contract before beginning work on a large project. I can't tell you how many times my clients thought I had agreed to provide them with something I hadn't - and we went back to the contract to see just what our agreement was. Most of the time, my client was astounded to see what they had originally agreed to... One time I was astounded to see what I had originally agreed to. The fantastic thing was, once we saw what our contract was, we were able to laugh it off, and keep a good working relationship, which would continue through more projects. If we hadn't had the written contract, our relationship would have been seriously damaged.

(4) An important purpose of a good contract is to keep things OUT OF COURT.
If you need to go to court, you've already lost. The language in a good contract will be easily understood by everyone involved. If something in a contract doesn't make sense to you, there's a good chance it won't make sense to a jury or a judge. If something in a contract doesn't make sense - the lawyers will make more money fighting over just what it means.

(5) The most important parts of a contract are the "What happens if" segments.
Many poorly written contracts state what each party expects of the other, but does not explain what happens if one party fails to meet the agreement.... then what? If the script changes halfway into production, what happens? If your client is supposed to provide a partial payment at a particular point and doesn't deliver in time, what happens? If you get sick and there's a delay, is your client supposed to pay you even if the project is late? Who owns the original footage? etc.

(6) There are a few good lawyers....
Some lawyers make a good part of their income by because their contracts frequently end up being resolved in court. Others are good at writing contracts that are so clear, they can't help but stay out of court. Keep that in mind. Also, even good lawyers have bad days - YOU are responsible for everything in your agreement with another party.

Good luck.

Travis
VoiceOver Guy and Entertainment Technology Enthusiast
[www.VOTalent.com]
Re: Contracts...
June 03, 2007 12:52AM
I got ripped of a few times before I started using contracts.

Its good to use a lawyer but not necessary.
You can basically send the client an email with your terms and conditions and then he can come back via email saying "Go ahead as per contract".
That saved me once when a vlient tried to rip me of for $20k.
I showed him the email and he paid me promptly.

I also never ever under any circumstances give work to the client before that section of the job is paid for.

The best way to make sure you do not get ripped off os to make sure you never take on any jobs for small businesses or boutique agencies. They are usually strapped for cash and its the owner himself paying you which makes it harder to get the money. I have never been ripped off by big clients only by smaller ones.

Johan Polhem
Motion Graphics
www.johanpolhem.com
Re: Contracts...
June 03, 2007 12:42PM
Quote

..I have never been ripped off by big clients only by smaller ones.

Yup. When the "little guys" cut spending in their little companies, the first thing that's cut is the advertising $$$. They will try everything to cut the cost of a production. Some even have the ballz to request a quote for a complete :30 (shoot / music / SFX / edit / Motion Design) for $500 - $800. Those are the biggest P.I.T.A. clients....and I have had these (small) clients pull out of projects with no notice or compensation for time booked. Live & Learn - no more.

Within my market (Central Florida), I personally work mainly on word of mouth only because most people know each other in this community. I use email correspondence as contracts (printed) because I know all my clients either personally or through other Artists. When we email each other outlines with deliverables / deadlines / rates / etc, we just reference those emails if something changes and all is well. I know my clients will pay and all terms are mutually respected throughout the project. I do not take a gig if the client is known to be troublesome / gives the Production Personnel a hard time paying. Life is too short to chase people for your $$$ and I have 6 mouths to feed (1 Wife / 3 kids / 2 cats).

For clients outside my market (remote telecommunication from other states), I get 50% of a negotiated flat rate up front and a contract is mutually agreed upon.

With an unknown client, going into a project without a contract (especially with a brand new or troublesome client) is like walking into a burning building in a bathing suit. Eventually...you will get burned IMHO.

- Joey

When life gives you dilemmas...make dilemmanade.

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