The producer may also want to adjust the agreement to give them flexibility as to how long the talent should be available for the film or when the funds should be paid. In addition, there are also other contractual provisions that apply not only to payment or gaming agreements that may be useful. These include moral clauses, force majeure clauses and others. And let`s not forget the most important term: the amount of money. The producer would be wise to negotiate a reduced amount that she would have to pay to the talent if, for some reason, the film does not progress. However, there are a few unique details in a pay-or-play contract that are worth watching. One of the most common, though often misunderstood, terms used by agents and business lawyers is pay or play. Essentially, paying or acting is the obligation of a producer – a studio, a network, a production company or an individual – to pay the artist, even if the producer later decides that the artist`s services are not needed. In other words, it does not matter whether the production progresses or not, and whether or not the artist has to provide services, he is paid the negotiated fees. This is subject to limited exceptions, usually including the artist`s disability, force majeure (an unexpected or uncontrollable event, also known as « force majeure ») and/or breach of contract by the artist. The expression is somewhat confusing because it implies that the artist is either « paid » or « played ». Of course, when the artist is played, he must also be paid.
That`s pretty much in line with what most people in the entertainment industry consider when talking about « pay or play, » but it lacks the kind of legal precision that the courts prefer. « Guarantee » means the involvement of a third party who promises to pay if the main party to the contract does not perform. You can`t really guarantee your own performance or payment obligation. So, technically, a payment or gambling clause is a « promise », but not a guarantee. Similarly, « no fault on his part » is somewhat narrow, as the clause could/should be triggered even if the person is not officially « released » from the contract. Once you and your lawyer have set the terms of your salary or gambling clause, you should recognize most of the legal language you are likely to find in their text of any other contract you`ve faced over the years. Any analysis here is mere speculation designed to shed light on payment or gambling clauses as a concept. As you read on, keep in mind that these examples are only presented as illustrations and not as in-depth case studies. Here is the type of pay-or-play clause, which is explained succinctly: Suspensive conditions are of particular importance for producers in the pay-or-play equation.
They can be used to further mitigate risk by imposing requirements on the counterparty and preventing it from secretly neglecting contractually agreed obligations. Since we`ve seen the pay-or-play clause explained and studied so far, you may have noticed that one word in particular creeps in more often than others. No, it`s not « paying » or « playing. » Before we get into the juicy details behind everyone`s favorite contract clause for movies and TV, a quick note – there`s really no one-size-fits-all for all payment or playback models. They are often created individually based on the very specific circumstances of a given situation. Actor Johnny Depp may have 99 problems with his personal life, but money is not one of them. As for the third installment of the Fantastic Beasts and Where to Find Them franchise (Fantastic Beasts 3), Depp had a paid contract under which he would receive $16 million, even if the film was never made or was recast for some reason. Because payment or acting clauses can have a significant financial impact on a producer, most won`t expect an actor to pay or act until the film has been given the green light, a fixed start date has been set, and the other main actors have been paid or performed. Independently funded images often try to avoid payment or gambling arrangements altogether or delay them until the start of the main shoot, so that they can be sure that the film is fully funded and will continue. Most actors who work in film and television won`t consider an offer unless it`s a salary or a play, as they won`t tie up their schedule if they`re not sure they`re getting paid for it.
In any case, it is important to be clear on both sides of the negotiating table on the conditions to be met before payment or gaming commitments enter into force. The conditions precedent describe all events that must take place before the effective entry into force of a payment or gaming contract. This could mean anything from putting a specific date back on the calendar to passing a criminal background check. .