Even if all the members of a band are friends it is better to have a signed band agreement in case of future disputes and simply to ensure the best running of the band. What is a band agreement? It is a contract between all members of the band stating how business is going to be conducted and provides a set of conditions to which members agree to adhere.
There are many considerations when drawing up a band agreement. One factor is finances. The agreement must state how the income is to be divided and who will manage the finances. The next consideration is who will own the band's name and logos as well as whether or not members can collaborate with other groups. A further facet is who will own the songs and how royalties must be divided. It is also necessary to include how disputes will be handled as well as what the procedure will be should a member quit.
The final band agreement should be drawn up by a lawyer and a witness must be present at its signing.