Avoiding Pitfalls in Business, Social Media, and Entertainment
Discover the importance of having an attorney draft and review contracts in the business, social media influencer, and entertainment sectors. Learn from real-life examples and protect your interests.
As a California attorney with extensive experience in contract law, I understand the value of having a legal expert draft and review contracts in various sectors. A well-drafted contract can protect your interests, prevent disputes, and save you time and money. In this blog post, we'll explore why you should always consult an attorney before signing a contract, focusing on three key sectors: business, social media influencer, and entertainment.
Business Contracts: Avoid Costly Mistakes
In the business world, contracts are the foundation of every transaction. Whether it's a partnership agreement, a sales contract, or a non-disclosure agreement, having a legally sound contract is crucial. When poorly drafted, business contracts can lead to serious consequences, including financial losses, disputes, and even litigation.
Take, for example, the case of Charles Schwab Corp. v. Bank of America Corp. (2011) WL 3880824 (N.D. Cal. 2011)). Here, a poorly drafted contract cost the defendant millions of dollars due to an unclear indemnification clause. An attorney with expertise in contract drafting could have easily prevented this costly mistake.
In Riverisland Cold Storage, Inc. v. Fresno-Madera Production Credit Association (55 Cal. 4th 1169 (2013)), the plaintiffs alleged that the defendant had misrepresented the terms of a contract, leading to a dispute over the conditions of a loan forbearance agreement. The California Supreme Court held that the parol evidence rule did not prevent the plaintiffs from introducing evidence of the defendant's alleged fraud. This case demonstrates the importance of having a well-drafted contract with clear terms and conditions to prevent costly disputes and litigation in the business sector.
In SIGA Technologies, Inc. v. PharmAthene, Inc. (2013 WL 2306633 (Del. Ch. 2013)), the parties engaged in a licensing agreement negotiation, which ultimately fell apart. The court found that SIGA Technologies had acted in bad faith by refusing to negotiate the final terms of the agreement. As a result, PharmAthene was awarded over $113 million in damages. This case underscores the importance of having a well-drafted contract with clear terms to prevent costly disputes and litigation.
By working with a skilled attorney to draft and review your business contracts, you can help to ensure that your agreements are clear, enforceable, and tailored to your specific needs.
Social Media Influencer Contracts: Protect Your Brand and Income
As a social media influencer, your personal brand is your most valuable asset. Influencer contracts often include clauses addressing compensation, exclusivity, content ownership, and termination rights. However, without proper legal guidance, these contracts can leave influencers vulnerable to exploitation and lost income.
For example, Luka Sabbat, a social media influencer, was sued by PR Consulting Inc. for failing to fulfill his obligations under an influencer agreement (PR Consulting Inc. v. Luka Sabbat, 2018 WL 6173079 (S.D.N.Y. 2018)). The case highlights the importance of clearly defining the scope of work and performance expectations in an influencer contract. A knowledgeable attorney can help you draft and review your influencer contracts to ensure your rights and income are protected.
In the matter of Logan Paul v. KSI (Olajide William Olatunji) (2018 WL 7168808 (Cal. App. Dep't Super. Ct. 2018)), YouTube stars Logan Paul and KSI engaged in a pay-per-view boxing match. The contract contained a rematch clause that stipulated a second fight between the two. However, disagreements arose over the specifics of the rematch clause, such as the date and location. This case demonstrates the significance of having an attorney draft and review contracts in the social media influencer sector to ensure that all terms are clearly defined and understood by both parties.
In FaZe Clan, Inc. v. Tenney (2019 WL 10495808 (Cal. App. Dep't Super. Ct. 2019)), professional gamer and social media influencer Turner Tenney, known as Tfue, sued his former esports team, FaZe Clan, for alleged violation of California's Talent Agencies Act. Tenney claimed that the contract he signed with FaZe Clan contained unfair terms and sought to invalidate the agreement. This case highlights the significance of having an attorney draft and review contracts in the social media influencer sector to ensure that terms are fair and compliant with relevant laws.
Entertainment Contracts: Safeguard Your Creative Rights
The entertainment industry is notorious for complex contracts with numerous clauses covering royalties, rights, and more. For artists and creators, understanding and negotiating these contracts can be challenging. A poorly drafted contract can lead to disputes, loss of creative control, and financial setbacks.
In the famous case of Kesha v. Dr. Luke (Gottwald v. Sebert, 2016 WL 1117440 (N.Y. Sup. 2016)), a contract dispute between the singer Kesha and her producer Dr. Luke resulted in a prolonged legal battle, with Kesha seeking to break free from her contract. An experienced entertainment attorney might have helped Kesha negotiate a more favorable contract, potentially avoiding years of litigation.
In Marathon Entertainment, Inc. v. Blasi, 42 Cal.4th 974 (Cal. 2008), the plaintiff, a talent management company, sued the defendant, an actress, for breach of contract after she terminated their agreement. The court found that the plaintiff had acted as an unlicensed talent agent, rendering the contract void under California's Talent Agencies Act. This case underscores the importance of having a well-drafted contract in the entertainment sector that adheres to applicable laws and regulations.
Engaging a qualified attorney to draft and review your entertainment contracts will ensure that your creative rights are protected and that you fully understand the terms and conditions before signing.

In the business, social media influencer, and entertainment sectors, contracts are essential to protecting your interests and preventing disputes. By working with an experienced California attorney to draft and review your contracts, you can help avoid costly mistakes, safeguard your rights, and focus on what truly matters: growing your business or advancing your career. Contact us here at The Bearman Firm today to see if we might be able to help you.

By ensuring that an experienced attorney drafts and reviews your contracts, you can avoid the pitfalls and consequences illustrated in these cases. A well-drafted contract can provide clarity and protection in various sectors, safeguarding your interests and preventing costly disputes.
Keywords: attorney, contract, draft, review, business, social media influencer, entertainment, California
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