It’s important that the business arrangement between a manager and their client (artist, musician, songwriter, producer, engineer, etc) be put into writing and signed by both parties in the form of an artist management contract or music manager agreement.
Even though disasters cannot always be avoided, obligations can be made much clearer and responsibilities more easily understood with the presence of a written artist management agreement. Before you get an attorney to draft a contract for you, however, you should first take stock of what you are prepared to do with and for an artist and what you expect out of the relationship.
Sample Management Contract With Penalty Clause Philippines In Harris
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Harris
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US-0021BG
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Management contracts are legal agreements that enable one company to have control of another business's operations. Business owners often sign these written agreements directly with the management company.
A penalty clause is a provision in a contract that imposes a monetary or other punishment on a party for failing to fulfill specific terms of the agreement. These clauses are typically designed to deter breach of contract and to encourage parties to perform their obligations as agreed.
While liquidated damages clauses are generally enforceable, courts do not enforce penalty clauses.
How to Draft an Enforceable Penalty Clause? Make sure there is a legitimate interest that is proportionate to the enforcement of the main obligation by the innocent party. Consider whether the penalty clause has an actual pre-estimation of loss. Avoid making the penalty extravagant or unconscionable.
A penalty clause is a contractual clause that imposes liquidated damages that are unreasonably high and represent a punishment for breach, rather than a reasonable forecast of damages for the harm that is caused by the breach, are referred to as penalty clauses.
However, the fine for breach of contract must not exceed the maximum amount allowed by law, i.e. 8% of the value of the breached contractual obligation portion (for commercial contracts, Article 301 of the Commercial Law) or 12% of the value of the breached contractual portion (for construction contracts, Article 146 ...