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Ellen
Ellen, Attorney
Category: Business Law
Satisfied Customers: 36714
Experience:  25 years of experience helping people like you.
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I am being considered for a new television show that is a reality

Resolved Question:

I am being considered for a new television show that is a reality type show introducing entrepreneurs to "angels" I recieved the contract and the show is asking for 7.5% of the net of the business in a perpetual royalty weather I recieve funds or not. Is a perpetual agreement like this even legal?
Submitted: 8 years ago.
Category: Business Law
Expert:  Ellen replied 8 years ago.

Hello,


Thank you for your question. I am happy to assist you.


The agreement that you described appear to be legal. It is a commercial transaction and not a consumer transaction subject to strict scrutiny by the courts.



That said, the agreement is very overreaching and harsh, especially if you do not receive funds. It could be set aside by the court as unconscionable. However, you will want to clearly state a contract that you are agreeable to rather than take a chance with a court at a later date.


I hope that the information which I provided was helpful to you.


Best wishes for a successful outcome. If you have additional questions, please do not hesitate to submit them to me directly.


Thank you,
FLAandNYLAWYER


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