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Ben Jones
Ben Jones, UK Lawyer
Category: Employment Law
Satisfied Customers: 46765
Experience:  Qualified Employment Solicitor - Please start your question with 'For Ben Jones'
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Need a contract clause defined.

Resolved Question:

Need a contract clause defined.
Submitted: 2 years ago.
Category: Employment Law
Expert:  Ben Jones replied 2 years ago.
Ben Jones :

Hello, my name is ***** ***** it is my pleasure to assist you with your question today. Can you please explain your situate in a bit more detail?

Customer:

Term 6) The term of this agreement will be one (1) year as the above-dated agreement. The Artist hereby grants to the Commercial Agent two (2) irrevocable consecutive options to extend the term of this agreement for two (2) periods of one (1) year each upon all the terms and conditions thereof. Notwithstanding the foregoing, in the event that Artist has not, during the Initial Period secured a recording agreement with a major label or with a production company or independent label distributed by a major distribution company or a major label in the U.K / U.S. Said options shall be exercised automatically unless ninety (90) days prior to the end of the current the then term the Commercial Agent gives the Artist written notice to the contrary. Please can you define the below contract term.

Does it mean that the initial length of the contract is 1 year however the company has the option to automatically renew the contract for an additional two years without requiring an additional contract or revised terms.

What happens if the artist secures a recording agreement with a major label or with a production company or independent label distributed by a major distribution company or a major label in the U.K / U.S. - does this mean that the contract does not extend automatically - please define this clause?

Ben Jones :

the contract is for one year initially, unless a recording agreement as stated is reached, in which case it can be extended for a further two years. The Agent can decide not to exercise the option to extend the contract of they give 90 days' notice to that effect

Ben Jones :

So the recording agreement is secured then the contract would extend automatically unless the agent gives the artist the required 90 day notice not to extend

Ben Jones :

Does this clarify things for you?

Customer:

Yes so if the artist has a recording contract the agreement is automatically extend and there is no need for a revised agreement?

Customer:

If a recording contract is not reached does this mean the contract ends after one year?

Ben Jones :

Sorry my error just been re-reading this and the age formatting made it difficult to see the word 'not' which changes things, so...to clarify, it is a 1 year agreement and the Agent can extend it for 2 years - they can use these options as they wish and the renewal will be on the same terms. If a recording agreement is NOT reached then the agreement is renewed automatically unless notice to terminate it is given

Customer:

What happens if a recording contract is reached, does the agreement not renew?

Ben Jones :

No, not unless the agent decides to renew it by exercising their options

Customer:

So if the agent decides to renew theres no exit clause for the artist?

Ben Jones :

not according to the clause you have given me but there could be something else in the contract

Customer:

And if the artist does get a recording contract how must the agent inform the artist of renewal in writing?

Ben Jones :

it does not say how but one would expect it to be in writing, or to at least communicate their intentions in some way

Customer:

Ok and is letter is all that is needed, I assume the contract does not need to be re-drafted?

Ben Jones :

Hi, no the contract would not need to be redrafted, it can continue on the existing terms and conditions

Ben Jones :

Hope this clarifies your position? If you could please let me know that would be great, thank you

Customer:

Thanks I have rated your service excellent

Ben Jones :

many thanks, ***** ***** best

Ben Jones, UK Lawyer
Category: Employment Law
Satisfied Customers: 46765
Experience: Qualified Employment Solicitor - Please start your question with 'For Ben Jones'
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