The ABCD's of a contract.

Yazi, we deal with contracts almost everyday of our lives. Some contracts don't require you to sign on the dotted line, you accept the terms of agreement just by paying or using the service. In this post, I'll give you some codes on how to approach any contract that may be set in front of you, before you head over to a lawyer.

Take a bus ride for example, when you pay your fare, you are agreeing to meet the terms of condition of service by the bus company. That's why you have to pay a fine if the inspector catches you without a ticket when they do their rounds.

Now, lets have a look at what a contract is?

According to Merriam Webster dictionary, a contract is "a binding agreement between two or more persons or parties especially : one legally enforceable". So once you agree to a contract, whether it's verbal or written, this means you have to play your part and the other party will play theirs. This is where I will task you to jump onto Google and search "What happens when a contract becomes void" and " What happens when you are in breach of contract?

In my previous role as a mortgage broker, I had the responsibility of communicating contracts with various people on a daily basis, so I am taking that experience together with my undergrad module in Commercial Law 1 to share the basic ABCD of a contract, so that you as a creative can at least understand what you're getting yourself into. Let's start with

A - All the parties involved

For a contract to be binding, you need to be legally able to enter into contracts. Contracts can be between two people or more, a person and a company or organisation, or between two or more companies or organisations.

B- Business Baby

There has to be a reason for entering a contract, so what is the purpose that has brought you together? Is this a recording contract between a musician and a recording label? or Is it a contract for a collaboration between a sneaker company and an influencer in order to promote their latest offering? Ask yourself why are you signing on to this contract?

C - Conditions

By now you've heard of 360 deals by recording companies where they basically own each and every aspect of your creation...that 360 part is the condition of the contract. This part is probably the most important aspect so don't be afraid to ask for detailed, simple language explanations of the contract conditions. Some conditions may be; You need to deliver 3 albums for the label and you will not own the masters, or under this agreement, you will have to do a nationwide promotional tour with 5 in person appearances per week etc. These are just examples as contracts differ so make sure you know

1. How long is the contract for?

2. What happens if the conditions are not met (breach or void?)

3. What law is governing the contract

4. Any other special conditions that have been agreed upon by the parties that need to be part of the contract.

then we have

D - Dollar bill yo!

In every contract there has to be some sort of exchange that takes place. Exchanges can be money for goods or services, services for services, goods for service etc. You basically need to ask how is each party benefitting from signing the contract.

This blog post in by no means counting as legal advice, but I am trying to make you understand that contracts are an everyday thing and if we take away the scary thought that only lawyers deal with contracts then perhaps you won't get taken advantage of as much as most creatives are currently.

In closing, as a creative practitioner, if you are able to get a lawyer to look into any contracts that you enter into then HOOREEY for you! But if awunayo, ungoyiki, reach out to Godmothersupreme Management and we'll try our best to help you out. (Remember, we're not lawyers or attorneys but we may know how to help you out :)

Shup.