This Article has been written by Aakriti Singh, a 3rd Year student of LLB (Hons.) from Amity Law School, Amity University Noida.
INTRODUCTION
‘Talent Management Agency’ is a corporation that deals with the procurement, offering, and promotion of employment opportunities and engagements for professional artists. Talent Management Agencies serve as counsellors, aiding artists in the advancement of their professional careers, and by managing an artist’s career, they offer talent counselling services for a fee.
In this context, ‘Artist’ refers to people involved in legitimate theatrical, film, and radio performances, along with musicians, directors, writers, cinematographers, composers, lyricists, arrangers, models, and other individuals who render professional services in the motion picture, theatrical, radio, television, and other entertainment sectors.
With a Talent Management Agency, an artist can receive aid for public appearances, logistics, endorsements, and due diligence and document negotiations that are vital for their career. To acquire such services, an artist must enter into a Talent Management Contract with their desired Agency. These agreements are essentially service contracts, having a uniform framework and conditions.
A Talent Management Contract, formed between an artist and agency, allows the parties to be transparent about the artist’s career parameters and the Agency’s scope of work. It also helps establish whether the agreement is an ‘Exclusive Contract’ or a ‘Non-Exclusive Contract’. Exclusive Contracts tend to be more popular as they tie the artist to only one agency, while a Non-Exclusive Contract allows them to work with other agencies as well.
In India, before the Agency culture in Bollywood came into effect, actors were obliged to appoint distinct managers to manage their public relations and negotiate with producers. Today, however, Talent Management Agencies can provide a comprehensive service and bear the burden of upholding the artist’s brand image. Such Agencies also serve as regulatory bodies, defining and establishing industry norms and regulations.
RIGHTS OF THE AGENTS IN ENTERTAINMENT INDUSTRY:
Section 182 of the Indian Contract Act elucidates the meaning of ‘Agent’ and ‘Principal’, in which an Agent is an individual assigned by a Principal to conduct transactions and accomplish professional tasks with a third party. The Principal, on the other hand, is the one who appoints the Agent to carry out their behalf. Despite its simple definition, this arrangement involves considerable risk.
The Indian Contract Act not only devotes a substantial section to the topic of Agency, but also outlines the rights and obligations/duties to which an Agent is entitled. According to Section 217, an Agent has the authority to retain, from any money received for the Principal in the conduct of their business, the amount that is owed to the Agent in the form of advances or expenses already paid or incurred, as well as a payment for the role as an Agent. This means that the Agent has the right to hold a portion of the funds in order to cover any payments or costs incurred in the execution of their work as appointed by the Principal. Nevertheless, any such expenditure must be made in the course of business-related activity that has been pre-agreed upon between the Principal and the Agent.
The Right to Remuneration for an agent’s work is among the fundamental rights recognized by Section 219 of the Indian Contract Act, 1872. The agent must receive the agreed upon remuneration from the principal for the conduct of their business. Where there is no specified remuneration specified in the contract, the agent is entitled to receive a reasonable compensation for their services rendered. This is regardless of the services being involuntary or gratuitous. Nonetheless, the agent will only be eligible to claim remuneration if they fulfil the job at hand. When it is left to the discretion of the principal to decide on the remuneration, reasonableness should be taken into consideration. To establish when an agent’s duties are complete, the specific terms and conditions of the contract should be examined.
As an example, if an agent is hired to secure advertising orders for a newspaper, they are entitled to receive the remuneration after acquiring the orders as their job has been completed. Inversely, Section 220 of the Indian Contract Act, 1872 states that the agent is not entitled to remuneration if found guilty of misconduct, fraud or breach. Furthermore, they will be liable to the principal for any losses or harm caused due to the breach of duty.
In addition to the right to remuneration, Section 221 of the Indian Contract Act, 1872 grants the agent a lien over the property of the principal. An agent is allowed to withhold the movable and immovable property of the principal until they are reimbursed or reimbursed for the services associated with said property. Such movable and immovable property could be items, papers, houses, and so on. This applies to commission, disbursements, and services associated with the property provided by the principal.
Right of Lien under Section 221 of the Indian Contract Act, an agent is entitled to retain possession of either movable or immovable property belonging to the principal, until such time as the agent has been duly compensated or reimbursed for services provided with regard to said property. Such movable or immovable property may comprise of items such as goods, documents, and even a house. These services encompass such aspects as commission, disbursement, and any other service related to the aforementioned property provided to the agent by the principal. Though this right of lien, as stipulated in the aforementioned Act, grants an agent the right to retain possession of the property only when remuneration is outstanding, this right is not an absolute one. Such lien rights will only be valid provided there is no contradictory clause contained within the agreement of the agency.
Right to Indemnity under Section 222 states that the principal is obligated to indemnify the agent against any lawful act, in accordance with his authority, regardless of the consequences that may arise as a result.
As per the Right to Compensation, the Agent is entitled to compensation, either in the form of general or particular damages, pursuant to the contract’s terms. Immediate and proximate consequences of a contract breach can cause wide-ranging harm. Typically, compensation is granted for losses or damages that can be directly or closely linked to the breach. To assess damages, the contract price is contrasted with the market price on the day prior to the contract infringement, plus any reasonable expenses and court costs resulting from the violation. Special damages may be awarded in cases of extraordinary circumstances, provided that the violators were aware of or foresaw the potential repercussions.
CONCLUSION
By consenting to a contract of agency, both the principal and agent accept their mutual fiduciary responsibilities. This contract grants the principal’s agent the power to act on their behalf and within the bounds of their authority. Additionally, the contract assigns various rights and duties to the agent that they are expected to abide by. A Talent Management Contract, formed between an artist and agency, allows the parties to be transparent about the artist’s career parameters and the Agency’s scope of work. It also helps establish whether the agreement is an ‘Exclusive Contract’ or a ‘Non-Exclusive Contract’. Exclusive Contracts tend to be more popular as they tie the artist to only one agency, while a Non-Exclusive Contract allows them to work with other agencies as well.
REFERENCES
Bollywood and Talent Management Agency The IP Press, https://www.theippress.com/2021/06/23/bollywood-and-talent-management-agency/ (last visited Feb 28, 2023)
Rights and duties of an agent iPleaders, https://blog.ipleaders.in/rights-duties-agent/ (last visited Feb 28, 2023)
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