Requirement for interest on late payments

It can be difficult to select a sales agent. Reputable sales agents should be willing to accept terms in their contract with filmmakers that protect their interests. Many such provisions do not cost the sales agent anything, as long as the sales agent lives up to the terms of its contract. A requirement for interest on late payments, for example, costs the sales agent nothing as long as payments are made on time. Such a clause is important because it will encourage a sales agent to live up to its commitments, and provide the filmmaker with a viable remedy in case the sales agent defaults. While a competent sales agent provides valuable services, one should always remember the importance of what the filmmaker brings to the table. Without a good film, the sales agent has nothing to sell. Most sales agents produce few if any movies themselves.
Here is a list of some of the most critical ways for filmmakers to protect their interests in contracting with sales agents. The following list should not be considered exhaustive. There are other provisions a filmmaker may want to include such as clauses dealing with advances, guarantees and reservation of rights.