Contracts

Compiled by Melinda McRae (1995)

Contracts are long legal documents spelling out the provisions of a book sale. There are several excellent books that cover the details which you should read at the point you begin sending out manuscripts. Here are some key terms you will often hear:

Acceptance/Revisions/Corrections: Acceptance is just that--they accept your book and you usually get your acceptance advance. Revisions can be required before a manuscript is accepted. Corrections refer to changes you or the editor or the copy editor want to make in the manuscript--and who has the final say over what gets into print.

Advances: The money paid to the author up front, based on how much money the publisher thinks the book will earn. Advances are usually paid out in two or three installments: signing, delivery, publication and/or signing, approval of proposal, delivery.

Joint Accounting: On multi-book contracts, usually for first-time authors. The entire advance has to be earned back in sales before you start receiving royalties. On a two-book deal, this means if Book 1 sells more copies than the advance amount, you won't see this money until the advance on Book 2 is earned back also.

Option Clause: They get first chance at your next book.

Publication Date: There should be some provision for how long they can hold your manuscript before printing.

Reserves Against Returns: Money from sales that your publisher is holding in case there are a lot of books returned. This is usually a vague, unspecified amount that they can hold for an indefinite time.

Rights: How much you get for foreign sales, movie sales (don't we all wish!), audio and about ten million other things. Generally, you want to keep as many rights as you can, or receive a high percentage split for them.

Royalty Statement: The (usually) twice-annual accounting of how many copies have been sold. Traditionally, these are figured in June and December; the money actually arrives in April and October. Some publishers do not issue royalty statements until the next period after the first six months following publication.

Warranty and Indemnity: You warrant that your work is original, not libelous, and if you get sued anyway, you pay most of the legal costs.

Sources:
Balkan, Richard: A Writer's Guide to Contract Negotiations, Writer's Digest Books
Curtis, Richard: How to Be Your Own Literary Agent, Houghton-Mifflin
Levin, Mark: Negotiating a Book Contract, Moyer-Bell