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Contracts Keyed to Fuller
Contemporary Mission, Inc. v. Famous Music Corp.
Citation:
557 F.2d 918 (1977)Facts
In 1972, Contemporary Mission, a nonprofit corporation composed of Roman Catholic priests who produced musical compositions, entered into the “VIRGIN Recording Agreement” with Famous Music for the distribution of a rock opera. Famous agreed to pay royalties, promote the recordings nationwide, spend at least $50,000 on promotion, and release at least four single records within two years. The contract contained a non-assignability clause requiring any assignee to agree in writing to be bound by the contract’s obligations. In 1973, the parties entered into a second “Crunch agreement” for distribution of other recordings, with Famous agreeing to use “reasonable efforts” to promote and distribute the records. This agreement contained a notice provision requiring written notice of any material breach with a 30-day cure period. On July 31, 1974, Famous sold its record division to ABC Records, which subsequently refused to have any relationship with Contemporary. Contemporary notified Famous of breach and filed suit. The jury found that Famous had breached both agreements, awarding damages of $68,773 for the VIRGIN agreement, $104,751 for the Crunch agreement, and $21,000 in unallocated damages.
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