Anybody know anything about "verbal agreement" laws?

[Heretic]

Why go to an attorney when The Hype! is here to provide legal advice?

Here's the backstory.

I just started working with a musician who had recorded his debut cd (so i wasnt around for most of this nonsense). He couldnt afford the total production costs, so some woman fronted about a grand for him. There was NO contract at all, just kind of a "pay me back when youre rich and famous" thing.

Okay...so the artist has since found out that the woman had been convicted and served time because she went into a Walmart and took a pin and jabbed strangers children with it (weird crime, huh???). He has a newborn son, and this info freaked him out, so he has cut off all ties with the woman.

Next step: The woman contacted the producer and threatened to sue if he gave the artist his recordings. She does NOT own these recordings at all, but the producer is afraid of being sued and has refused to give the artist his songs that are fully paid for.

I step in to play Mr Nice Guy...

I believe that...hey, she gave him the cash...lets pay her back. So, I worked out a deal where the artist would give her 20% of sales until she is paid back (if she is not repaid in full in 6 months, the remainder would be given within 2 weeks). I figure that is MUCH more fair than just not paying her back.

However, the woman is now demanding a permanent percentage of the sales of the cd. She feels that she OWNS the masters, and therefore should profit forever off of their sales. She is holding the masters hostage, which puts in doubt the bands spring tour opening for some pretty big bands. That makes me mad, so even I dont want to pay her back anymore.

Technically, we could sue the producer, but we dont care enough. We have 4 songs, and will release them as an EP and just redo the full length next year. Heck, maybe we we'll sue him just for the hassle.

OKAY ENOUGH BACKSTORY!!!

The woman WILL sue the artist for the money she lent him. My question is...does anyone know how the law handles issues like this? There is absolutely no paperwork whatsoever that says that this was not a gift or that the money was ever supposed to be paid back.

 

[Silicon Surfer]

First off, I am not a lawyer. That being said, as I understand it, verbal agreements are treated just like written ones under contract law. This is subject to the ability to verify what was actually agreed upon and providing the agreement does not violate other laws. If what was said is not disputed or can be proven then she is entitled to that and that only. If the agreement was that she be paid back then she is entitled to that and no more. She would not have any rights to the music,the profits or the copies. She might be entitled to interest if the repayment could be determined to have been delayed beyond what would be reasonably expected.