Mou
Abhishek jain
(Querist) 08 November 2011
This query is : Resolved
Hi i want to enter into MOU with a party.
such MOu shall relate to making a film.
whereby one party intending to make film and other party being experienced in such field shall assist the former in making film.
All the money, expenses ,risk. losses shall be borne by party intending to make film and the other party shall be given given a share of 15% of turnover or 50% of profits whichever is higher.
how shd i proceed with such an MOU.
prabhakar singh
(Expert) 08 November 2011
An M.O.U. is generally not a contract enforceable at law and there can not be a partnership in law as being conceived by you where one party shall share in profit but not in losses ;only a minor can be admitted in a partnership for only sharing of profits in a business till his minority.
It would be better for you to render your services on a fees basis as an experience advisor to film making for which calculation of fees may result even on turn over basis in any percentile without taking name of profit.
let us see what others say as mine is final.
Abhishek jain
(Querist) 08 November 2011
Thanks a lot MR. prabhakar for your kind reply.
However i would like you to know that we had put conditions that the film shall be produced in the name of both the parties.
So as of now what would you suggest how should i proceed with it to ensure that all the risk and liabilities are assumed in the name of other party.
ajay sethi
(Expert) 08 November 2011
it appears that one party is financier . he is putting in all the money . the other party is acting as advisor as he is expert in making fims . in view of his technical expertise he is getting 50%of profit share.
the finacier loses all money in case film flops .
if both are producers then both will lose money if film flops.
as mr prabhakar singh points out that MOu does not create any right or
obligation of binding nature. In essence, MOU is a simple and pure gentlemen's agreementwhich does not create any right or duty of binding nature to be enforceable by a Court of
law.
ajay sethi
(Expert) 08 November 2011
in ultimate analysis, a document is
classified by its contents and not by title therefore, whether a document is an MOU or a
contract shall depend on its contents and not on title. For example, a document might have
been termed and titled as MOU, but contains binding terms & conditions, it is a contract
Abhishek jain
(Querist) 08 November 2011
Thanks a lot Mr. AJAY
So to sum up
I can insert the following clause :
Profit sharing as mentioned above.
Losses and liability only to be assumed by other party.
All expense and finances to be borne by other party.
No claim shall lye on us.
Further please enlighten as it how can i get it legally enforceable and where to get registered
thanx a lot
ajay sethi
(Expert) 08 November 2011
get it drafted by a lawyer . sub registrar office for registration .
prabhakar singh
(Expert) 08 November 2011
Sorry for late joining you.
Though suggestions of mr.sethi may become workable but itmust be masterly drafted.
Mr. Sethi is from mumbai and a very versatile lawyer why do not you take his services.
email id : ajaysethi64@gmail.com mobile no 9820087763
address: 307 , Natwar Chambers
3rd florr ,
nagindas master road
Fort .Mumbai 400023
Shonee Kapoor
(Expert) 08 November 2011
Better get it drafted by a competent lawyer.
Regards,
Shonee Kapoor
harassed.by.498a@gmail.com
M V Gupta
(Expert) 09 November 2011
I agree that the document should be a regular contract for production of a film. It cannot be a simple MOU, which is generally a document made for setting out the acts to be done or complied with by the parties who propose to execute a project requiring several actions to be taken by the parties before they enter into the regular agreement or contract. In your case what is required is the agreement or contract itself. Better get it drafted by an experienced Lawyer as advised by the Experts.
