Handshake deals. I shudder at the thought. Well not really. I’m an attorney and hand shake deals are GREAT!
Don’t get me wrong. I would never do a handshake deal, nor does the California bar allow me to do a handshake deal with a potential client if I believe that more than $1000 of services will be provided. I am obligated by the California Bar to have a representation agreement with my client.
So why do I say handshake agreements are great…. because those of you that enter into handshake agreements often times have to 1. come to an attorney because what you thought was the deal is not what the other party thought the deal was, or 2. you ask an attorney to document your deal after the fact. Okay 2 is not as sexy as 1. At least not if your an attorney.
Seriously though, hand shake deals are done all the time and sometimes powerful people with great amounts to lose, or gain, enter into hand shake agreements. Please note these agreements are usually followed with a mound of number 2. (haha for those who have the maturity of a 3 year old) (or see above for definition of #2)
If you have entered into a handshake agreement then do one or more of the following.
- Have a witness (Not your mother or grandmother)
- Start performance
- Document after the fact with an email, or thank you letter stating the terms that you agreed on. This will evidence what you believe the agreement is, and will allow the other party to object ot any terms they feel are not what they understood (oh look a bargained for agreement). Also note, that once you begin with a thank you letter and you get a response back that is not adequate to you, you should respond appropriately. After about 150 emails back and forth the two parties will come to some type of agreement. (take that to an attorney) haha, I always find a way to include myself.
So for all of you entertainment professionals out there be aware that a handshake can do a lot of harm…
This article reposted from sasik|moon, a legal blog about Entertainment, Business and surviving in Hollywood
Partner of the legal firm sasik|moon, Jiyoung Moon is an attorney specializing in entertainment and complex litigation and procedural issues. Jiyoung has consulted on multi-million dollar technology development projects and helped establish SmartRules™, a national litigators online tool. Jiyoung has also served as counsel in international business, immigration, international anti-trust and employment matters. In recent years, Jiyoung’s focus has shifted to assisting filmmakers reach their goals and dreams by providing guidance and counseling in independent film production and distribution. A native of Korea, Jiyoung is fluent in Korean, and she holds a Doctorate degree from the Univestiry of Southern California in Cello Performance. Jiyoung plays cello with the Los Angeles Attorney’s Orchestra.
