Introduction To Contract Law

The Music Biz is a bit of a mine field and doing it properly is important. Really, we want to all just get down to the business of playing music but it is important to understand contract law. The first thing you need to know is that if you are carrying on in a way that it seems there is a contract and all the requirements of legal contract are met (you'll learn about this on the site) then you are, in fact, in a contract.

Most of us just play music, some of us promote it, and others are there to exploit it. Now, we need to define exploit, it is not a naughty word by any means. Exploitation is the function of anyone involved in your music, so don't run away from it. You want your managers and your promoter to exploit your music. With-out this exploitation, you miss out. Here's the proper definition:

Exploit: make use of and derive benefit from - Oxford Dictionary.

There is a second definition and that seems to be the one conjured when the term exploit is used and that has something to do with being treated unfairly. As a muso you want to be involved with the proper definition and as a music manager etc. you want to act with the first definition.

WHAT IS A CONTRACT?

A contract can be defined as a legally enforceable agreement. To go a bit further with that we can say, a contract is a legally enforceable set of promises in return for another set of promises.

A music or business to business contract is usually written but as I stated earlier if you behave as if a contract exists then it does. Most contract are verbal or through action. An example of this is that when you purchase goods from a store you are entering into a legally binding contract with the outlet. You agree to pay a price for an item, the store agrees to supply it and the item is fit for it's purpose and free of any encumbrances. You'll understand that sentence a little better when you have worked through all the will be written here about contract law.

Simple Contracts!

Well it isn't all that simple but that is the definition of most contracts. They are known as 'simple contract'. There a few other types such as Formal Contracts which are ones that are executed under seal. These are deeds, and the most of common of them are used in property (land and the such) transactions.

Simple contracts can be very complex, so don't be fooled by the wording of 'simple'. Put simply, the term Simple Contract is given to contracts which are not formal deed. Throughout this section of musicbusinessmanagement.info, we will explore the construction of a contract. I will write about the essential ingredient required in a contract which are:

Offer

Acceptance

Consideration

Intention to be legally bound

Capacity to contract

Legality of the Promises

I'll also cover form, warranties guarentees and remedies.

One last note - courts will not enforce a contract that have been formed for an illegal purpose!