Record #3293

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William Marston Seabury, Lawyer, General Counsel to the Motion Picture Board of Trade and the National Association of the Motion Picture Industry
Mr Will H. Hays, President, MPPDA
Reel 1
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Uniform Contract

On another amendment proposed by MPTOA, relating to an advance deposit: The distributors claim that payment on account of the purchase price for the right to exhibit motion pictures is not an advance deposit within the meaning of the advance deposit bills already passed in several states. The provision that the distributor may apply the whole or any part of the first payment in payment of damages sustained by the distributor by reason of any breach of this contract might well be interpreted to mean that the distributor would not have the right to apply the whole or any part of the first payment for any other purpose, which would give the exhibitors exactly what they want, namely, an agreement to treat the first payment as an advance deposit for the use or rental of motion pictures or as a security for the performance of the contract, which is substantially the language used in all of the advance deposit statutes. For these reasons I would be opposed to the adoption of the clause in the form proposed.


Uniform contract (62) Show all keywords…


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