Legal Question in Entertainment Law in California

Option on a film

I am trying to get out of a contract. I optioned my screenplay to be produced by an indie film company. I was also deemed as co-producer. I now want to get out of the contract. It's for two years. I was never paid anything for it, not even $1.00. The contract says that I still own it until they raise money for it which they're not currently doing or will ever do at this point. I've asked for a dissolution and they're asking me to sign it guaranteeing them a certain (high) percentage if it goes to the market for 'sale'. The contract also says that both parties need to sign off on the dissolution. They're refusing to do it, yet also refusing to push the project ahead. Can I sell it on my own since I am still the owner? Do I have any legal rights? Do they? The contract also says that no party may assign any of its rights or obligations without prior written consent of the other party and if it's attempted, it's deemed null and void. Someone told me that because they didn't 'pay' me even $1.00 for it, there's a way for me to get out of it.


Asked on 10/12/07, 10:00 pm

3 Answers from Attorneys
Michael Stone Law Offices of Michael B. Stone Toll Free 1-855-USE-MIKE

Re: Option on a film

In order for there to be a valid contract, there has to be a "consideration," or in other words you get something in return (usually money, but anything of value will suffice.) After having a lawyer read the "contract," which is something you should have done before you signed it, then have the lawyer write to the other party disaffirming the contract. Don't do this yourself, unless you want to have to pay $11 to watch your movie when it comes out.

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Answered on 10/12/07, 10:26 pm
Mitchell Roth MW Roth, Professional Law Corporation

Re: Option on a film

I just got a film and all materials back from a producer for a client of mine. It is a matter of contract law, and you are not in your element. You need to have representation and consider it a cost of doing business.

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Answered on 10/13/07, 12:33 am
Gordon Firemark Law Offices of Gordon P. Firemark

Re: Option on a film

Although it's true that consideration is a required component of a contract, in most cases, under California law, valid consideration is presumed to exist in the mutual promises between the parties.

The option you signed is a contact INTENDED to be binding for 2 years... during which time you are NOT free to sell it to anybody else... even though ownership hasn't transfered. The option holder is the ONLY party who can buy the material from you during the term of the option. That's the idea behind EXCLUSIVE rights.

That said, you should have a lawyer (like any of us who've responded here) take a good look at the contract to tell you your chances of getting out of the deal.

Unfortunately, this is a classic example of why consulting a lawyer should be done BEFORE signing a contract. After your signature is on the paper, it's often too late to do anything about a bad deal.

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Answered on 10/13/07, 2:43 am


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