Q: I just had someone send me an option agreement. I’m not going to lie… a lot of it is legal mumbo jumbo that I don’t fully understand but seems harmless. There’s one thing though that seems really weird. It says that the Producer is my “attorney-in-fact” with the power to sign documents on my behalf? This strikes me as really sketchy. Is this Producer trying to pull something over on me?
A: I’m not going to tell you that the Producer is not trying to pull one over on you. All the Producer wants is the power to purchase a smallish yacht, a couple of European castles, a Picasso or two and some shrunken heads on your credit. So what if the Producer wants to go all MC Hammer in your name? At least you’ll have a chance to be the next FreeCreditReport.com singer. Right?
Half-hearted attempts at humor aside, that provision alone isn’t going to lead to a life of used sub-compacts and catchy jingles that get stuck in my head for weeks at a time. It’s actually a very common provision (that admittedly tends to scare people who actually take the time to read their agreements). If the provisions in your agreement have titles, the one you’ve quoted is likely under the title “Further Documents.” Continue reading the full story . . . »