Not just the name of the television show on NBC, Deal or No Deal is the question many attorneys are asking, as well as being asked by their clients, regarding transactions that are being made with companies and other individuals.  Most of my practice involves representing entertainers and athletes engaged in multi-year transactions with companies, whether the contract is for three years or five years for example (e.g., television series actor, pro wrestling performer, etc.).  It is crucial because there is a difference between an oral and written understanding that multi-year agreements and deals are memorialized in writing.  The need for a written contract is required in accordance with union, if applicable, and legal provisions. The California Statute of Frauds is codified in California Civil Code section 1624.  This section requires certain types of contracts to be in writing in order to be enforceable in court or otherwise.  These types of contracts include real estate, contracts that cannot be performed within one year, agreement to pay the debt of another person, and contracts for the sale of goods over a certain dollar amount.  Although each state varies in its requirements, every state in the United States has now codified the Statue of Frauds, with the exception of Louisiana.  Notwithstanding the types of contracts that must be memorialized in writing, there are certain exceptions and defenses to what constitutes a “writing” or not.  For example, both parties to the contract may consent to an email being a writing under Federal law.  Under California law, California courts do not accept emails as a writing.

In the world of business, contracts are essential for establishing agreements between parties. Whether it’s a partnership, a purchase agreement, or a service contract, having a written document outlining the terms and conditions of the deal is crucial for ensuring that both parties are on the same page.

Key issues and terms when services last over multiple years include, inter alia, effective date, annual compensation guaranteed or optional, suspension and extension, contract opt out terms, and governing law, etc. Ultimately, the success of a multi-year contract depends on the willingness of both parties to work together in good faith and uphold their written obligations.  In conclusion, it’s important for businesses to carefully review and negotiate contracts in writing to ensure that they are fair and equitable for all parties involved. By doing so, they can avoid potential disputes, vagaries, and misunderstandings that could arise if a contract is a not in writing and signed.