CONTENTS
- 1. The Client Who Visited the Entertainment Attorney
- - Exclusive Contract Termination, as Explained by the Entertainment Attorney
- 2. Entertainment Attorney Reviews the Exclusive Contract
- 3. The Entertainment Attorney's Legal Advisory on Exclusive Contract Termination
1. The Client Who Visited the Entertainment Attorney
The client who visited the entertainment attorney was an athlete gaining popularity both in Korea and abroad.
The client had many fans owing to outstanding athletic ability and a striking appearance.
With increasing popularity, the client had a growing number of engagements, such as television appearances and advertising shoots, and needed management. The client therefore entered into a contract with the current agency.
At the time, the agency had many well-known athletes under contract, so the client proceeded with the contract without concern.
However, after the agency's representative changed and the existing management approach was altered, problems large and small began to arise frequently between the agency and the client.
Recently, an issue concerning the settlement of accounts also arose, and the client began to consider terminating the exclusive contract.
Accordingly, the client visited Daeryun's entertainment attorney to receive legal advisory regarding termination of the exclusive contract.
Exclusive Contract Termination, as Explained by the Entertainment Attorney
🔗What is an exclusive contract?
As can be seen from the word ‘exclusive,’ it is a contract under which the contracted party must belong entirely to the relevant employer in carrying out the work covered by the contract. It is typically concluded between a management company and an affiliated person in the cultural and arts sector or the entertainment and sports sector.
After an exclusive contract is concluded, the agency has an obligation to provide and support an environment in which the affiliated person can develop his or her talents. Conversely, the affiliated person under the exclusive contract has an obligation to live up to the agency's investment and to do his or her best in the supported activities.
If either party fails to fulfill its obligations, or if the obligations of either party are deemed unfair, a lawsuit to terminate the exclusive contract is pursued.
Lawsuit to Terminate an Exclusive Contract
Lawsuit to Terminate an Exclusive Contract
Lawsuit to Confirm the Non-existence of an Exclusive Contract
- A lawsuit seeking to render the contract void on the ground that the exclusive contract contained unfair provisions at the time of its conclusion
- A lawsuit seeking to hold a party liable where the exclusive contract is valid but the obligations have not been properly performed
Claim for Damages
- A claim for damages may proceed at the same time as a lawsuit relating to the exclusive contract
- Legal disputes continue over the contract amount and the amount of damages, and athletic activities may be restricted during the litigation period
Statutes Relevant to Exclusive Contract Termination
Civil Act
Article 543 (Right to Cancel or Rescind)
(1) Where one or both of the parties have the right to cancel or rescind a contract by virtue of the contract or the provisions of the law, such cancellation or rescission shall be effected by a declaration of intention to the other party.
(2) The declaration of intention referred to in the preceding paragraph may not be withdrawn.
Article 544 (Delay in Performance and Rescission)
If one of the parties does not perform its obligation, the other party may demand its performance, fixing a reasonable period therefor, and may rescind the contract if no performance is made within that period. However, if the obligor declares in advance an intention not to perform, the demand is not required.
Article 545 (Fixed-Time Acts and Rescission)
If, by the nature of the contract or a declaration of intention by the parties, the purpose of the contract cannot be achieved unless performance is made within a certain time or period, and one of the parties does not perform at that time, the other party may rescind the contract without making the demand referred to in the preceding Article.
Article 546 (Impossibility of Performance and Rescission)
If performance has become impossible for a cause attributable to the obligor, the obligee may rescind the contract.
Article 550 (Effect of Cancellation)
If one of the parties cancels a contract, the contract loses its effect prospectively.
Article 551 (Cancellation, Rescission, and Damages)
Cancellation or rescission of a contract does not affect a claim for damages.
2. Entertainment Attorney Reviews the Exclusive Contract
The entertainment attorney reviewed in detail the contents of the exclusive contract that the client had entered into with the current agency.
It was confirmed that the agency had breached its management obligations under the contract, and it could be seen that there had also been disruptions in managing the client's schedule after the agency's representative changed.
It could also be seen that the agency had not provided the client with settlement records for the past several months.
Daeryun's entertainment attorney advised that, due to the agency's breach of its contractual obligations, a lawsuit to confirm the non-existence of the exclusive contract's effect could be filed and that a claim for damages could proceed at the same time.
The client expressed the intention to observe the agency's conduct a little longer and, if it did not improve, to file a lawsuit to terminate the exclusive contract.
3. The Entertainment Attorney's Legal Advisory on Exclusive Contract Termination
The athlete who had requested legal advisory from the entertainment attorney regarding termination of the exclusive contract with the agency was quite satisfied with the content of the advisory.
Termination of an exclusive contract is a highly complex matter, and because it is a lawsuit that must be pursued against an agency, considerable difficulties arise.
Depending on the case, a provisional injunction may be necessary, and in some cases a notice by certified mail is sent or a suit on the merits proceeds directly, so it is necessary to follow the legal procedures appropriate to the circumstances.
Daeryun's entertainment attorney conducts litigation by forming a handling team of attorneys with practical experience in the relevant industry.
If, as in the situation above, you wish to receive legal advisory on exclusive contract termination, you may consult Daeryun Law Firm's 🔗entertainment attorney.
This content is based on actual case studies of Daeryun Law LLC with some adaptations, and the copyright belongs to our firm.
Unauthorized reproduction, duplication, or distribution and other copyright infringements may result in legal action under applicable laws.
