Can Musician Terminate Management Contract?

Dear Rich: I have a contract with an artist who is now seeing some success. He decided out of nowhere that he wanted to redo our contract after he got success. I refused. So he had a lawyer tell me that it’s terminated. We have 2 albums worth of songs. I’m also the indie label he signed to within the confines of the management deal he signed with me. Can I release an album if I co-wrote songs and co-authored audio production? I also co-own the masters. His lead vocals are on the album. Lastly, am I able to use his name and image? The contract says I can, but again, he says the contract is terminated. Can someone terminate a contract without a court ruling? 
The artist can't arbitrarily terminate the contract simply because he's had some success and wants out. He'll need to come up with a a valid legal basis.
What's a valid legal basis to terminate? If you failed to honor a  material term of the agreement, for example you deliberately failed to account to the musician for royalties and wouldn't correct the error, the musician could say, “That’s it, we’re done,” and terminate based on the material breach. In that case, the musician may have a reason to stop honoring the agreement. (This approach is sometimes employed when under-age musicians disaffirm management deals.) But if the reason is bunk -- a lawyer is just trying to bully you with legal hocus-pocus -- you may need an attorney's help to stop the insanity. If you prevail in a dispute, you would be entitled to payment of damages (usually what you would have received if the contract were performed). Claims of breach in management contracts are often preludes to settlement. In other words, how much will it  cost the musician to buy his way out of the contract? (BTW, a more peaceful way to terminate  would be if your management contract contains provisions that trigger termination or provide a right to terminate at will or under certain conditions, for example if the term -- the period of a time during which the contract is in force -- has ended.) Finally, as to using the musician's name and image, that may depend on whether the management agreement stands or falls.
What about the co-writing and co-ownership? It's tough to tell what your rights are as a co-writer or co-owner. The traditional rule is that any co-owner of a copyright can exploit the copyright (sell it or license it) as long as the other co-owners are compensated. But those rules may be trumped by your agreement --  for example, you may have agreed otherwise, or you both may have assigned the song copyrights to a publisher or the sound recording copyright to the indie label and established rules as to how that material can be used. In short, you need to consult with a lawyer. If you're low on funds, perhaps there is a lawyers-for-the-arts group in your area.

Can Manager Sign Side Deal with Lead Singer?

Dear Rich: I recently became band manager and I have some questions regarding the contract that we are in the process of negotiating. The lead singer writes all the original material himself so would it make sense, or even be possible to have a contract with the band as a whole but a separate contract with the lead singer as he is writer and therefore any publishing deals or sync royalties I set up would only be relevant to him. He also has a solo tribute act that I will oversee. So, if I had a separate contract with him for his solo act, which would only involve performance commissions, could that contract also include publishing/sync elements relative his material written for the band since the other band members would not actually receive anything from that revenue stream.
We're old fashioned and believe in discrete agreements for discrete purposes. Because of that, we see three agreements in your future
Managing the band. You'd use a management agreement with the band. Because you seem particularly interested in the career of the lead singer, you would probably want a leaving member provision that allows you to manage any band member who strikes out on their own.
Music publishing agreement. Traditionally, when a manager wants a cut of a musician's songwriting income, the manager acts as music publisher and enters into an agreement with the songwriter, either a music publishing agreement or music administration agreement. In the music publishing agreement, the music publisher acquires copyright in the songs and the songwriter gets a cut of revenue. In the administration arrangement, the songwriter retains copyright and the publisher gets a cut for handling the paperwork associated with song promotion. As a general rule, we discourage musicians from entering into publishing agreements with managers unless there are strict limitations on time (it should not extend much longer than the management deal) and songs (it should only cover songs released during the management term).
The tribute band agreement. Why are you getting paid by the tribute act? If it's because you're booking shows, you would use a booking agent agreement. (Note, that in some states, like California, booking agents are regulated and must be licensed.) If it's because you're managing the act, then you'd use a management agreement.
FYI Dept. You can find detailed explanations of all three of these agreements in our book, Music Law, or in our exciting new Music Law program presented by Lynda.com

Do I Sign Solo Artist, Band, or Both?

Dear Rich: I recently started a music production business and I am in the process of signing a new artist as his manager. I have some questions regarding the contract between myself and the artist. He has a solo singer-songwriter act and a small band, that I will oversee. Do I need two separate contracts, as a manager for both his band and his solo act? He has agreed to a five album term instead of year by years contract. Can I change the terms of the contract, in your Music Law book, as we both agree on our terms? If the solo artist and the band operate as two separate entities, you should sign two separate contracts. That will allow you as a manager to keep separate accounts reflecting income and expenses. Otherwise, income destined for the band may be hijacked to pay off the solo artist's debts. If they are not separate entities -- for example, the solo artist hires the band as contractors and pays them an hourly rate -- then one management contract with the solo artist should suffice and there is little need to sign the band.
What about changing the agreement? It's more common to sign a management contract based on years (or financial goals), not on number of albums. (It sounds like you are crossing a record contract with a management agreement.) After all, what happens if the artist doesn't have (or keep) a label deal? Does that mean the management agreement ends? In any case, you're free to make any changes you wish to the agreement but we would suggest that when modifying the standard agreement, always review the instructions that accompany the agreement. Also, beware that in some cases, managers may need to be licensed in California.