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JGM
JGM, Solicitor
Category: Law
Satisfied Customers: 11544
Experience:  30 years as a practising solicitor.
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Need this clause interpreted: The term of this agreement

Resolved Question:

Need this clause interpreted:

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.

Submitted: 3 years ago.
Category: Law
Expert:  JGM replied 3 years ago.
Thank you for your question.
The agreement will last for a year. The agent can elect to extend the agreement for another year then for another year. This extension will happen automatically if the artist hasn't yet got a recording contract unless the agent gives 90 days notice that the agreement will terminate at the first year or at the second as the case may be.
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Customer: replied 3 years ago.

Can the artist exit after one year or does the contract auto-renew? What is the minimum term the artist can stay in contract for?

Expert:  JGM replied 3 years ago.
There is no provision for the artist to exit after a year if the agent gives notice of extension and the artist has no recording contract.
If the the agent doesn't give notice of extension, the minimum term would be one year. If he does notice at the end of the first year then the agreement could run for two years. If he gives notice at the end of year two then the agreement could run for a total of three years.
Customer: replied 3 years ago.

Sorry, just so i'm clear. If the artist has a recording contract and the Agent gives notice of extension does the artist have any say or is the contract auto-extended?

Expert:  JGM replied 3 years ago.
Th contract won't auto extend if the artist has a recording contract but the agent is entitled to extend it.
Customer: replied 3 years ago.

Sorry I'm not clear, just so I understand.

The agent is entitled to extend does he need permission from the artist to do this? If at the end of the 1st year the agent wants to extend and the artist doesn't, does this terminate the agreement?

Expert:  JGM replied 3 years ago.
No, because, according to what you have narrated from the agreement the agent is granted up to 2 irrevocable options to renew the contract so the artist would have no choice in the matter.
This is a separate provision from the later "auto renew" provision.
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