So, what exactly is a contract?
That question might seem trite, and the answer obvious. However, it makes sense to look at this relationship and transaction from the very beginning. A contract is a legally enforceable agreement between two or more parties. The legal elements that need to be in place for an enforceable contract are: an offer, an acceptance, and the exchange of consideration or something of value. For example: you walk into the Electric Fetus, you see an album that you want, and the price the Fetus is asking (offer); you think that's a reasonable price, so you take the album up to the cashier and tell them you want to buy the record (acceptance); you pull out the cash for the record and exchange it for the possession of the album (exchange of consideration); contract formed, done deal. Of course, there are more formal situations where a written contract is drafted, and the relationship, obligations, rights and understandings between the parties are all reduced to writing, and signed by one or more of the parties to the agreement. Those are usually for agreements of much more complex and long-term relationships.

Why are written contracts important?
Contracts do not have to be in writing to be valid, legally binding and enforceable. Sure, some must be in writing, and different states have different laws determining when a contract must be written to be valid. In Minnesota, an oral or verbal agreement can be an enforceable contract in many circumstances. Many times a deal is so simple and informal (and usually not financially significant) so that a written contract is not warranted. In those cases, it makes no sense to take the time to reduce the understanding to written form. But when the transaction involves rights, obligations or elements that have a high value (either monetarily or principally), it makes sense to have the salient terms reduced to writing. That way, all of the terms that are important are right in front of the parties BEFORE they agree to them. Any misunderstanding can be spotted and dealt with before the parties begin the transaction, or the misunderstanding can be avoided before the time and costs are invested in beginning a bad deal. Furthermore, and perhaps most importantly from a lawyer's and judge's perspective, the terms of what the deal was supposed to be is easy to prove, and it is easy to see where the deal was not carried out. If one party adhered to their obligations under the written contract, and the other didn't, it is easy to point to the breach, and determine who should suffer the damages associated with the failure of performance. If it is a verbal "agreement" that does not go right, the proof lies (no pun intended) in the undoubtedly disparate versions of the conversation, as "recalled" by the parties. Remember, one of the parties is claiming that the other has failed in its obligations under the agreement. You should see where the opportunity for confusion, failure to recall or flat out denial will enter into a complicated burden of proof for the complaining party to sustain. Written contracts do not have to be formal, or have fancy wording to be valid. The essential elements of the agreement can be written on a cocktail napkin to be an enforceable written contract. Better to write it, than to risk it.

What type of contracts do entertainers and musicians see most?
Aside from the standard contracts that we all see in our lives (leases, insurance policies, purchase agreements, service provider agreements, etc.), entertainers and musicians enter into agreements related to their professional careers and development. Many they can handle on their own, such as purchasing equipment, instruments or supplies. Some they can handle if they understand what the whole deal means, such as studio leases, promotional printing or marketing agreements, booking or gig contracts. However, a few are so important, and potentially detrimental if they go bad, that an artist, performer or musician would be well advised if they had some outside advice on what the deal means, how they could be affected, or what might be negotiated to enhance their position. Any agreement that involves transferring copyrights, trademarks, valuable property or other valuable rights, even potentially valuable rights, should be in writing. Furthermore, relationships between people or entities that will take place for longer periods of time should also be written. These include band partnership agreements, management agreements, publishing, recording, promotion and agency agreements. These all are very important in an artist's life, and potential for success. Do it right the first time, or get in line with the thousands of other artists who tell war stories of how they got screwed before they knew what was good for them.

Can I draft or negotiate a contract myself?
Absolutely. The question is, should you? The answer to that question depends on the complexity of what is being contracted, and whether you understand the terms of the deal (not the words, the meaning of the words –all of them- in the context of the contract language). If the deal is not significant enough for you to worry if it is not honored, or that you might lose something valuable if it doesn't go your way, then have at it. Certainly, you are not going to have someone else review a transaction involving the purchase of an album at a retail outlet. But if you are deciding whom to trust with your professional career, creative works or business ventures, I'd suggest getting some outside help.