Music production contract

[Tarrnation]

Hello, my son wants to start a home-based music production business in TN. He already has a client who wants to sign a contract so we modified a suitable contract that we found online and an edited draft of this contract can be viewed at https://goo.gl/GC80rC

I have a few questions regarding this contract:

1) Would this contract be binding considering my son is only 15 and could I provide my parental consent by signing as a 2nd "Producer"?

2) Does he have to have a business license or could we just use our actual names instead of the planned business name?

3) We plan on making a google form that clients can use to verify that they have read and agree to the terms and hence, attach their E-signature to this contract so we would also like to know if there are any special terms/conditions required to make this valid and how exactly should we go about verifying the identity of the person(s) signing?

If you notice anything else in the contract that is concerning, please be sure to let me know about that as well. Thanks!

 

[OHRoadwarrior]

If this is a serious business and a he could potentially earn him millions in commissions, the contract is not a do it yourself item.

 

[Tarrnation]

Of course not but we're just getting started here and this is just for some intro music for a YouTube channel - nothing too serious. We don't have wads of cash to throw into this just yet but we want to make sure our ducks are in a row as best as we can with the "DIY" approach for now until we can afford to hire an attorney.

 

[quincy]

Of course not but we're just getting started here and this is just for some intro music for a YouTube channel - nothing too serious. We don't have wads of cash to throw into this just yet but we want to make sure our ducks are in a row as best as we can with the "DIY" approach for now until we can afford to hire an attorney.

I fear you (and your son) are about to commit one of the biggest mistakes new businesses can make - and that is to not get professional business/legal help in the initial stages of the business development.

The contracts that are signed will be legally binding on all parties. To piece together a contract, hoping it will cover all that it needs to cover to protect the rights of all parties and that outlines clearly the obligations of all parties, can mean any dispute between the parties over its terms will wind up in court.

In other words, and to echo what OHRoadwarrior said, if this is to be a serious business - one that your son takes seriously and that others will take seriously - the time for DIY is after the business is set up right and running properly. Otherwise you may find you need professional assistance to get you out of a legal mess, which can be costly and put a quick end to the business.

Good luck.

 

[Tarrnation]

You guys are killing me. I know that the smart move is to set up a business first and hire an attorney to draw up our contracts for us but as I said before, it's not a "serious business" at this time and we can't afford to do all of that over a $200 contract for a 15yr old producer working at home. If you guys are willing to front us the cash to do everything "properly", we will gladly accept donations but we are living in poverty here and there is no other way for us to go about doing this right now. You guys are basically telling me to not even try to let our kid try to pursue his American dream unless he's got thousands of dollars to dump into setting up a business first? C'mon now...

Do you seriously think the guy is going to take us to court over $200? The only foreseeable way this will wind up in court is if he breaches the contract and sells the production to another company without involving us - in which case, we stand to make $10,000+ over any legal dispute according to the terms of the contract and if we are even thinking about taking anyone to court, we'll definitely get a lawyer to represent us before doing so.

But that's all besides the point. I came here seeking help with specific questions - not to receive a lecture on how a business is "supposed" to be done. Is anyone here actually going to read the contract and answer my questions or am I just wasting my time here?

 

[FlyingRon]

Sorry we can't tell you what you want to hear. The american dream these days alas includes litigation and has done so since long before I was born (and I bet I'm older than both you and your kid added together).

You want a contract that means something get a lawyer. You don't care if it means something because lawyers are too expensive, you takes your chances.


Now to answer some specific issues. Your son can NOT enter into contracts. You would have to enter into the contract on his behalf. This alone is going to have to change the terminology of contracts targeted at adults. You aren't the "second producer" you are the parent acting on behalf the minor.

If he's performing services in Tennessee he needs a business license and to collect and remit the business tax. He doesn't need to have a corporation or LLC, though one might be advisable. If he's going to do business under a name that is not his own (or the name of a corporation or LLC), he will need to register that fictitious name.

 

[RRevak]

Do you seriously think the guy is going to take us to court over $200?

Yes, they do. We know because we see similar situations on here all. the. time. One of the posters who answered you is extremely proficient in contract law so if he says get an attorney then get thee to an attorney.

You guys are basically telling me to not even try to let our kid try to pursue his American dream unless he's got thousands of dollars to dump into setting up a business first? C'mon now...

We're telling you that you could be ignorantly setting yourself up for a legal world of hurt if you choose to proceed blindly. You can either him and haw about your poverty or you can take the advice you're being given from professionals and make the correct business choice to either drop the idea until you CAN do it right or proceed and take the risk.

 

[quincy]

... Is anyone here actually going to read the contract ... ?

We all agree on the advice (seek out the help of a lawyer if you want to avoid legal issues with your son's "business") and FlyingRon answered all of your specific questions save the one I have quoted above, which I will answer for you now.

No. No one here is going to read the contract and advise you on its terms. Reading and evaluating the language of contracts falls outside the scope of this forum. For those members on this forum who are not attorneys (the majority of the members), assisting you in that manner would be practicing law without a license. For those members on this forum who are attorneys, it would be violating state professional rules and codes.

For help with the contract, you will need an attorney licensed to practice in your jurisdiction. Perhaps you can find a low-cost legal aid clinic - or you can take the risk that any contract you cobble together from what you find online will sufficiently protect you.

I am sorry we could not help you in the way you wished to be helped.

 

[Tarrnation]

Now to answer some specific issues. Your son can NOT enter into contracts. You would have to enter into the contract on his behalf. This alone is going to have to change the terminology of contracts targeted at adults. You aren't the "second producer" you are the parent acting on behalf the minor.

If he's performing services in Tennessee he needs a business license and to collect and remit the business tax. He doesn't need to have a corporation or LLC, though one might be advisable. If he's going to do business under a name that is not his own (or the name of a corporation or LLC), he will need to register that fictitious name.

Thank you for answering a couple of my questions. Now THAT is what I "want to hear"!

Suppose we ditch the "fictitious"/business name for now until we can afford to register as a business and just treat this as a personal contract. Would that be acceptable? Also, I'm still looking for info regarding how to properly validate an E-signature if anyone is willing to chime in on that.

And by the way, I actually do help a little bit with the production process which is the only reason I suggested putting myself in the contract as a "second producer". I was just wondering if doing so would be enough to constitute parental consent but you're saying that a minor cannot enter into contracts at all?

 

[OHRoadwarrior]

All the advise we gave you aside, if you are content to operate with a generic contract as a low budget production company, plan on losing out if the song becomes high grossing and you will be fine. The other issue is liability for infringement on works of others one of your sons contractees might commit. It could subject your son and you to hundreds of thousands in legal defense expenses without insurance.

 

[Tarrnation]

Perhaps you can find a low-cost legal aid clinic.

Those actually exist for business purposes? I thought they only helped with people seeking justice for wrongdoings.

 

[OHRoadwarrior]

Perhaps your local business incubator if there is one.

 

[quincy]

Those actually exist for business purposes? I thought they only helped with people seeking justice for wrongdoings.

Yes, they exist. Do you have a law school in your area?

 

[Tarrnation]

All the advise we gave you aside, if you are content to operate with a generic contract as a low budget production company, plan on losing out if the song becomes high grossing and you will be fine. The other issue is liability for infringement on works of others one of your sons contractees might commit. It could subject your son and you to hundreds of thousands in legal defense expenses without insurance.

This contract is not for a song that will be put up for sale so there's no chance of it becoming "high grossing". It's for a 10-30 second intro section for a YouTube channel so it's not even an actual song. The actual songs that we've produced so far were songs that my son created and we produced/published on our own. Seeing as how we control both sides of the creative process (song writing + production), and these are completely original works, "infringement" is not something that we are worried about at this time. This whole idea of starting a production company was something that we didn't expect to happen any time soon but someone with a YouTube channel liked our music and contacted us and they don't want to do the deal without a contract so now we're stuck with a decision of either trying to do a DIY contract or turn down the opportunity which is a big one for us considering part of the deal is that the owner of the YouTube channel will be promoting our music/website on every video they publish from that point on. So yeah, it's a risk but in our opinion it's definitely one that's worth taking because it's not often that opportunities like this just fall into your lap, yaknow?

 

[Tarrnation]

Perhaps your local business incubator if there is one.

Yes, they exist. Do you have a law school in your area?

Thanks guys for your recommendations. We will definitely be looking into seeing if there are such options available to us in our area.