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“ When is a Contract a Contract ”
At what point is a contract an obligation by the parties involved?
Comedy Hypnotist Alan Sands - The SandMan

    I have three ways of recording the stages of an inquiry for services.
      Light Pencil
      Dark Pencil
      Pen & Ink

LIGHT PENCIL
A simple phone call, email, fax or other inquiry as to price, availability and what services are provided I note and consider as a light pencil request. Any lightly penciled in inquiry is not an obligation on any parties part. It is simply an inquiry similar to when a person walks into a store and asks the price or availability of anything that is in the store.

DARK PENCIL
This inquiry was serious and I should keep this client informed as to the development of my tour or if I have another inquiry for the same dates and they might want the right of first acceptance. Dark Pencil notes or inquiries can still be erased, but it is a more concrete place in the negotiation path, but is still not an obligation. This Dark Pencil area is a huge gray area and encompasses any area between an inquiry and a request for a contract.

PEN & INK
Is the third definition I use. This means that a contract has been requested. This means to me, once a contract is requested, a deal is 99% agreed upon and both parties should sign the contract and fulfill the requirements of the contract. Of course, all contracts are negotiable and may go back and forth a few times as changes are made. An addendum can be attached to any contract by either party. An addendum explanations and translates of laws that are unique to that state, county, agency, must be explained in detail. An addendum attached by an Service Provider may define why something in the contract can not be fulfilled (i.e., a request for employee comp. insurance when an independent contractor is a sole proprietor or uses family members only.)



CONTINUED
When a contract is executed there should never be surprises.

SERVICE PROVIDERS
All items that can or will cost the purchaser money need to be discussed in detail before the contract is written. Entertainers need to be clear and upfront regarding: lodging, meals, transportation supplements or costs, sound, lighting and stage requirements, actual payment and how & when payment needs to be made.

PURCHASERS
If there are mandated state withholdings or items a purchaser knows they can not fulfill as part of any obligation (i.e., WY State Fair doesn't provide hotel rooms and NC & SC have a state income tax withholding from all Independent Contractors who are not Incorporated or hold a business license in NC or SC), requests for insurance, and a timeline of how long it will take to sign and return an agreement by either party. These same requirements then need to be part of the contract.

SUMMARY
Before a contract is requested, either a light or dark penciled inquiry or agreement is no obligation by either party to fulfill any side of an agreement. A definitive ÒPlease send me a contractÓ needs to be requested and confirmed either by email, fax, phone call, in person, text message or some other clear communication.

It is a good and proper procedure for either party to reiterate all conditions agreed upon in writing before the contract is fully executed. This can eliminate undue rewriting of the contract and making all agreed upon conditions part of the contract eliminating the need for one or both addendum.

Surprises or changes in an agreement by either party at any time need to be discussed unless undue delays in the full execution of the contract are the goal. If there are ever conditions that cannot be met by both parties then quick and timely communication is polite and necessary to eliminate all bad feelings and ill-fated rumors from hurting reputations and creating ill will.


Contract Renegotiations When is a Contract a Contract Horror Story #1 Horror Story #2 Horror Story #3