Contract negotiations demand research and expert legal guidance, which is costly. However, negotiating entities can expedite the negotiation process using a deal memo without incurring legal and drafting costs. A deal memo, albeit somewhat less formal, prepares you by outlining clear expectations of both parties. So what goes into a deal memo? We delve into the essentials of a deal memo and when to use it.
What Is a Deal Memo?
A deal memo is a pre-contract document that stipulates vital points of a contract between entities. In the film industry, producers and cast use the deal memo for the contractual agreement that reflects payment terms, responsibilities, and contract duration. However, the deal memo has many use cases in different sectors. Essentially deal memos preclude a legally binding contract.
What Is a Deal Memo Template?
A deal memo template is a customizable form that you fill with terms that regulate the pre-contract agreement. There are multiple deal templates from various web platforms for you to fill, print, and download. However, ensure the template you choose suits your contract needs and has all the essentials of a deal memo.
Deal Memo Templates & Examples
The Importance of a Deal Memo Template
Deal memos are essential when considering whether to commit to a contract. However, the importance of a deal memo template transcends the pre-contract period.
Effective investment evaluation
Before putting pen to paper, analyze the benefits and challenges involved in the deal. Deal memo templates provide a way to explore your options before investing your resources into an agreement. The template should have clear expectations to assess and consider their feasibility.
Every entity in a contract usually has high expectations of how the deal will pan out. However, more often than not, the agreements do not go through as planned. In case of shortcomings in service delivery, you can use the deal memo to reestablish each party’s responsibilities. Even though not necessarily legally binding, a well-designed deal memo template ensures accountability.
A well-designed deal memo template has utility as both a reference document and a reusable memo. After you design a deal memo template, you can save it and use it for future use while altering actor names and minor clauses. Additionally, you can identify patterns after completing the contract to aid you in designing a legally binding agreement.
Essential Elements of a Deal Memo Template
Before you design or use a top-line deal memo template, you should ensure it has the essential details that set it a notch higher. Such essentials include:
- Employer name. A good template should have the employer’s name written legibly. In a deal memo template, the employer is the production company. The addresses and contact numbers accompany the employer’s name.
- Employee name. After the employer’s name, your template should also contain the employee’s name, the actor’s name, and the job title.
- Terms and conditions that regulate the agreement.
- List of responsibilities. A deal memo is a pre-contract; therefore, it should contain the duties the employee is supposed to undertake. The responsibilities enhance accountability and inform both parties what to expect.
- Salary details, frequency of payment, and terms of compensation. All remuneration benefits should go into the salary details section of the deal memo template.
- Overtime details. Usually, a scene may take longer than planned with a production company. In that case, overtime payment rates should be in your template.
- Equipment details. A dedicated section on the deal memo template stipulates whether you are outsourcing equipment, the insurance, and periodic payments for the equipment.
- Transportation details. Who will cover the transport cost, if any?
- No obligation clause that does not oblige the employer to utilize the employee’s services.
- Signature section. A reliable template needs to be authentic. The only way to prove authenticity if the deal memo is through both party’s signatures. Ensure your template has a clear signature section.
- The design and layout of the deal memo template are equally important. Avoid flashy colors and fancy fonts for your deal memo template. However, you can highlight vital clauses in the memo.
When to Use a Deal Memo Template
A deal memo template protects both the employer and the employee from contract breaching. A deal memo has clear expectations and responsibilities of the employee and the employer.
A contract between the employer and an actor, cast members, and the crew requires a deal memo to officiate the deal. Ensure both parties read the fine print before affixing signatures.
The script is dynamic during film production. A deal memo guarantees the security of the content and allows changes in the content as stipulated in the agreement. Ensure the actor(s) sign the deal to avert future content claims.
What should be included in a deal memo?
A deal memo is a pre-agreement between the employer and employee. Include terms, salary details, employer and employee name, responsibilities, and relevant information that guarantees the success of the contract.
How do you fill out a crew deal memo?
In a crew deal memo, ensure you inform the crew of your project details before signing off on the formal agreement.
Can you break a deal memo?
Depending on the terms of your agreement, deal memos can include breaking off clauses that you leverage to terminate services between the employer and the employee. Unlawfully breaking the contract can result in penalties.
What is the difference between a deal memo and a contract?
A deal memo is a pre-contract document, while a contract is a legally binding agreement stipulating clear terms and conditions, salaries, and termination options.
What is a cast deal memo?
A cast deal memo is a detailed agreement that outlines the actor’s availability, guaranteed shooting sessions, billing terms, accommodations, and other special perks.
A deal memo protects both entities in the agreement and ensures accountability. Secure your content and enhance service delivery through your deal memo. You can easily design one using online templates.