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Music Business Agreements

Managers and booking agents work as separate companies that work on your behalf and support your activities after entering into a contract with you. They often need special legal permission. Managers are the main landmarks between musicians and their business partners such as labels, distributors, publishers and media outlets, while a booking agency has specialised in catering and organising performances. As part of these contracts, it is important to ensure that you, where appropriate, take rights, act on your behalf and enter into contracts with third parties. Contracts are the main tools that companies in the music industry use to build business relationships. It is therefore as important for musicians as it is for businessmen to have a general sense of how they work. Bilateral agreements are probably the best known – they are agreements concluded by different parties and they require some kind of performance on the part of both parties. In contrast, unilateral contracts require a promise from one party and the performance of others. For example, if you click on a box to indicate that you have read the General Terms and Conditions of Sale on a website, a mandatory unilateral contract is concluded. On the other hand, a personal management contract between an artist and a manager is an example of a bilateral contract. The artist gives the manager a percentage of the income and the manager monitors the musician`s affairs. Both sides are taking action to comply with the agreement. The label also does not accept the contractual delivery of a master recording until all samples are released, which delays payment to the producer! On the other hand, for the artist, the fact that the production company usually pays recording, mixing and mastering fees which, if the artist does not play an instrument, could include session musicians and the remuneration of engineers.

An artist signs a contract with a manager or agent to help him in his business. Managers and agents usually take a percentage (somewhere between 5% and 20%) of the musician`s income from record sales, concerts, etc. .