As you progress through the music industry it is inevitable that you will enter into business agreements with other people. These agreements often take the form of a legally binding contract. A contract can be oral or written.  It can take the form of a 50 page complex agreement or a simple one-page letter.

In order for a valid contract to be established in law, four elements need to exist:

• An offer - from one party to another agreeing to do something.
   
• An acceptance - the party receiving the offer must agree to the terms as offered and express this acceptance to the other party.
   
• Consideration - consideration simply means money or monies worth. In other words both parties should be getting something out of it.  It does not need to be money but something of value or some benefit must be exchanged.
   
• An intention to create legal relations - both parties should intend to be legally bound to perform the terms they have agreed between them

Generally contracts are in writing but this is not necessary.  Terms that have been agreed orally can form a valid legal contract  - however oral contracts are more difficult to enforce, as it is usually a case of one person’s word against the other.  This is why it is always better to get something in writing even if it is a simple letter setting out the key points of what has been agreed.

There are many agreements that as a professional musician you may have to consider and enter into.  These include: -

Management
Recording
Publishing
Agency 
Venue
Merchandising 
Production (to include producing and remixing)
Television and Radio Appearances 
Synchronisation