To avoid legal issues in the future, the parties must agree on this point by setting a value for certain goods, services or job performance. The examination legally binds a contract and protects both parties from possible actions or misunderstandings. In addition, reflection often includes a section that determines the liability of losses. Having a contract that clearly defines this information helps a court determine where the error occurred, who is responsible and what punishment should be imposed. Verbally or in writing? A contract is entered into when the contracting parties have agreed on the respective service obligations, i.e. where there are two identical declarations of intent for the conclusion of the contract. Contracts are not linked to any particular form. As is often the case in practice, they can be concluded verbally, for example by phone or by a handshake in the studio. No further written confirmation is required for the effectiveness of the contract. In the event of a failure in the performance of the contract, for example. B in case of overstays, not (within the deadline), disagreement on the execution of the order, etc., a written contract can be very useful, if not necessary. Indeed, any person who refers to a contractual obligation of the other party must be able to prove that obligation.

Applicable law and competent jurisdiction In the case of a contract between the contracting parties based in different countries, it is important to agree on the applicable law and jurisdiction. This clarifies the legal provisions in force. For example, if it was agreed that German law applied, the BGB rules apply with regard to the conclusion of a contract, formalities, rights and obligations, etc. The same goes for the court. As a general rule, the contractor is sued at the head office of his head office, i.e., if necessary, abroad. However, there are exceptions and it is therefore wise to approve in writing and, if possible, outside all the terms and conditions of sale (CGV) to a court (not a particular court). Such jurisdictional agreements apply to legal entities and therefore come into play when an artist, theatre group or artist collective enters into a contract as a stand-alone company. Firstly, the Community acquis provides a solid basis for the formation of contracts, by the principle of contractual freedom and by the principle that the agreement is essential for the binding nature of the parties.