Contracts
Having a written contract is important to be legally protected at the very least against unpaid fees.
Arts SEPs and freelancers are independent contractors providing a service to the hirer at your own risk and will not be protected by the Employment Act nor enjoy benefits like employer CPF contribution, work injury compensation, medical and dental subsidies or paid annual leave. Furthermore, SEPs and freelancers are not protected from liabilities which may arise and may have to pay the hirer for damages caused. Thus, having a written contract is especially important to be legally protected at the very least against unpaid fees.
It is best to document agreed on terms and conditions between you and your hirer through a written contract, to avoid disputes later. Before a contract is enforceable, you must be clear of the following:
Your hirer has offered the project to you with agreed and clearly stated terms;
You have accepted the agreed and clearly stated terms in writing; and
There is a clear intention from both parties to create this legal relation.
The signing of a contract typically involves the handwritten signatures of you and your hirer. However, the Electronic Transactions Act (Cap.88, 2011 Rev.Ed. Sing.) allows for electronic records to be used in expressing and accepting an offer to form a binding contract. Arts SEPs and freelancers must be careful with off-hand responses to job offers or terms within the job offer discussed via email or messaging platforms such as WhatsApp and Telegram, as the offer may be a valid offer and your response may be taken as a binding and enforceable written agreement.
The Singapore Drama Educators Association (SDEA) has developed The Arts Freelancer’s Playbook: SDEA’s Guide to Understanding Contracts for drama educators and freelancers in general, to address the growing desire among the community to better understand contracts.
Advocates for the Arts: A Legal Handbook for the Creative Industries is a publication of Law Society Pro Bono Services, which aims to provide bite-sized information on various common legal issues faced by members in the creative industries.
How should I draft my clauses? Open me for some examples!
Sample contract clauses developed by Mr Ng Joo Khin of Morgan Lewis Stamford LLC
For a sample of other forms of written contract e.g. Letter of Agreement or Performance Agreement, click here.
For a sample of the Dispute Resolution/Recourse clause, click here. This was extracted from the Advocates for the Arts – A Legal Handbook for the Creative Industries developed by the Law Society Pro Bono Services.
What are some common legal clauses I should look out for on my contracts?
'Boilerplate clauses’ refer to relatively standard clauses which tend to be agreed upon between you and your hirer with little or no negotiation.
Exclusion of Liability or Limitation of Liability
This is a clause in your contract that excludes or limits your hirer’s liability for anything from breach of contract to negligence. Hence, always negotiate for a fair limit to your liability before signing on the dotted line. That said, in Singapore, the Unfair Contract Terms Act (Cap.396, 1994 Rev.Ed. Sing.) also acts as a safeguard to protect persons in a weaker bargaining position.
Dispute Resolution/Recourse
This is by far the most important clause to have in any contract as it stipulates how any dispute that may arise between you and your hirer will be resolved. Mediation is usually the least expensive and the least time-consuming amongst the various forms of dispute resolution.
Force Majeure
This clause protects both you and your hirer against a failure to perform or fulfil contractual obligations arising from unforeseeable circumstances beyond the control of either of you, such as natural disasters, like an earthquake or flood. This clause may also include how your fees or compensation will be handled in such cases.
Governing Law
A governing law clause specifies which laws will govern the interpretation and enforcement of the terms of your contract. The choice of law usually reflects the country where you or your hirer is situated in or where the subject matter of the contract is situated.
What happens when there is a breach of contract?
If your hirer breaches the contract e.g. failing to pay you on time or failing to pay you the agreed amount, exercise the Dispute Resolution/Recourse clause in your written contract. Generally, the recourse available to you includes:
a) termination of contract;
b) claim for damages;
c) specific performance of an act (which is usually a term stated in the contract) e.g. to return all copyrighted materials to you;
d) injunction requiring a party to do or cease to do an action.
If someone you hire breaches your contract, etc etc
If you breach your contract, and depending on the seriousness of your breach, you may suffer termination by your hirer, a demand for damages, or worse, being sued and taken to court. If you breach your contract because of reasonable causes, e.g. discovering you have a critical illness, then there might be room for negotiation with your hirer. However, if negotiations fail between you and your hirer, seek third party assistance, e.g. through the use of mediation services.
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