The duration of a purchase agreement is generally shorter than in the case of an option contract – 6 to 12 months compared to 12 to 18 months in the case of an option agreement – since the manufacturer essentially has a free possibility to purchase the investigation period. If the purchase contract is exclusive – purchase contracts can be both exclusive and non-exclusive – the owner has an even greater incentive to reduce the lifespan so that the purchase rights are not only linked to a manufacturer. Under a purchase agreement, an owner usually has more control over the property and a possible sale to a buyer than under an option agreement. A purchase agreement usually gives the owner the right to approve whether to proceed with a particular buyer. As a general rule, an option agreement does not impose such a limitation on the conclusion of a transaction on the manufacturer. In addition, the owner may insist that he or one of his representatives participate in a kick-off meeting or be informed of a kick-off meeting. If you`re a producer and you`re pitting a project with studios/networks/finance companies, you`ll probably feel like you`ll be more likely to set up the project if you have a talent retention agreement called Talent. It`s very likely that you don`t have the money to present a “payout or gambling” agreement (meaning the talent is paid, whether the project is set up or not), so ask the talent if they`re willing to sign a talent retention agreement, which links the talent`s name to your project. The talent engagement agreement usually states that as a producer, you are developing the project and trying to set it up, and if this project is set up and the studio/network/funding unit agrees, you will negotiate an agreement with the talent mentioned in your talent engagement contract. As you can see, there is nothing definitive about this talent engagement agreement. There is no definitive declaration that the talent will be abandoned when the project is put in place, nor a definitive remuneration (firm or otherwise) for the talent that is agreed.
Due to the fact that there are important things in your talent engagement agreement that are not final, if your project moves forward, you could begin your descent into a legal nightmare. What if the deal depends on the talent being part of the project and the talent claims that your talent engagement agreement is not a valid contract? Can you force the talent to be in the project? The information contained in this article does not constitute legal advice and is not intended to provide legal advice. If a producer wants to have better control of rights, an option/sell contract may be more appropriate. . . .