SAG Film Contracts Statute of Frauds for Independent Films

The film industry is characterized by competition. A history of “handshake deals” and a background of oral contracts. Which created a framework for corruption and fraud. It’s not to say that there is corruption and fraud in every instance! But that whenever there are not legal implications in place within any industry, the risk for frauds to come out is high. Thus, oral contracts are not the ideal. And can pose significant legal challenges in regards to enforcement and consequences when things go wrong. Independent filmmakers must fully understand the way that SAG film contracts and the Statute of Frauds work as this has a key weight on the way agreements between filmmakers and producers are entertained.

What is the Statute of Frauds?

The Statute of Frauds is civil code which requires that contracts be in writing and that there be written evidence of the contract terms.

Moreover, the execution of SAG film contracts and the Statute of Frauds for independent films is a vital area of case law. In which filmmakers must understand that the “handshake deal” is no longer permissible nor is admissible in court.

According to the Statute of Frauds, contracts must be in writing. This means that filmmaker’s should not execute any handshake deals. Unless or until they have first executed the same “deal” in writing.

Contracts that must be in writing include:

• The film business LLC.
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• Any promise to pay. Such as a compensation agreement, deal memo, or similar employment contract.
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• Investment agreements and loan contracts.
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• SAG Actor Agreements.
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• SAG film production agreements.
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• The lease of real property. Including the lease of property for the use of a film shoot.
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• SAG Commercial Contracts.
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• SAG Independent Producer Contracts.

What Happens if a Contract is Not in Writing?

If you think SAG film contracts and the statute of frauds for independent films are not important, think again! If a contract is not in writing you’re taking a very excessive chance that the agreement will not hold up should there be any disputes between the two parties.

In fact, according to the Statute of Frauds, all SAG contracts between filmmakers, film professionals, and others in the industry must be in writing with a signature. 

In Writing

But, what does “in writing” mean? In terms of the Statute of Frauds, the term “in writing” means that documents must be written in some form. But it doesn’t necessarily mean that you must have a single document.

You could have multiple signed and unsigned writings that together could constitute a contract agreement. The key area of importance is that the documents clearly refer to the same subject matter and that together they establish the contents of a contractual agreement.

In Summation

The written contract must state with reasonable certainty that the parties agree to the information, the essential terms and conditions are outlined, and the promises made as well as who the promises are made to are included.

Thus, SAG film contracts and the statute of frauds will provide protections for filmmakers and industry works, provided they always follow the “in writing” rule and know that the “handshake deal” is certainly not permissible in court.