1.0 Contract Administration

1.1 Filing

A recording contract has to regulate a set of constantly changing circumstances. It tends to adapt and grow. Somebody needs to look after it. During the life of a recording contract there will usually be “side letters” adding to, or varying, the agreement. These might deal with the purchase of equipment, or tour support arrangements for various territories, or royalty breaks on campaigns in particular territories. Somebody (usually the lawyer) should be given housekeeping responsibilities. The housekeeper should maintain a file which will include the contract itself and any correspondence concerning it. In particular, it is sensible to fix to the contract all formal amendments together with copies of option notices.

1.2 Dates

Somebody has to keep an eye on any important dates. This might be the manager, the lawyer or the accountant. The main reason for carefully monitoring option dates and the like is to ensure that there is no delay in invoicing for any advance which is due. Record companies rarely pay advances unprompted. If they are late in paying they will seldom agree to pay interest. It is also worth noting option dates in case the record company mistakenly fails to exercise an option in time. Mistakes do happen. Missing an option is the only cardinal sin in a business affairs department and is likely to lead to instant dismissal. A careful note should be made of exactly when masters are delivered.