The Fashion Business Contracts…

The contract saga between the Nigerian  G-Worldwide Entertainment Company and Oluwatobiloba Daniel Anidugbe also know as Kiss Daniel has been all over the internet for weeks now. If you are not aware of the story, I will be dropping the summarised coded gist.

Based on Available media reports, the relevant facts are that  Kiss Daniel entered into a seven years agreement with the G-world-wide entertainment company, but then a few weeks ago- whilst the contract still existed- he unilaterally announced the termination of the agreement.  Moral lesson-  Before signing any contract make sure you read and understand the terms and conditions.


I will like to drop the whole story but this post is primarily for fashion businesses. Behind the scene of every fashion business, every fashion show, reams of legal contracts bind together designers, manufacturers, suppliers, retailers, models, photographers, make up artists, the list is endless.

Susan Scafidi, The Founder of Fashion Law Institute and a Professor at Fordham University.  She stated (in relations to fashion shows):

“No one ever sees all of the business and legal work that goes into creating this shows… There are reams of contracts that have to happen.”

The success of any business is dependent on The strength of its contract and it’s contractual relationships. In the world, so many businesses live or die by the pen. Contracts are written with legal terms, I have heard an Individual say:

“I can just get a contract template on the internet, I don’t need to consult a lawyer in order to draft or sign a contract.”

If you have that mindset get ready to get into a lot of trouble. Even if you have a PhD in English or any other language, always consult a lawyer when you are about to draft or sign a contract.

This post will be focusing  on some critical contracts which fashion business owners need to be aware of  related to manufacturing and sales;

Manufacturing and Supply Agreements

This is a contract  between a designer and the company that produces the goods , goods like footwears, clothing, accessories, hand bags and so on. This  agreement states the terms and conditions under which a company will manufacture and supply goods to another. A manufacturing agreement May may include the following terms ; quantity, shipment, product specification, delivery dates, payments, ownership of the intellectual property and the liabilities of the parties.

Showroom Agreement

This is a contract between a showroom and a designer whereby a showroom space is made available for a designer to display his/her line. The showroom has the responsibility to introduce the designers line to it’s new and existing buyers. A showroom agreement always includes the following terms; payments, space assignment, commissions, obligations of the showroom, liability for lost or damaged goods and the duration of the agreement.

Consignment Agreement

This is a contract between a retailer and a designer whereby the retailer grants the designer to sell certain merchandise at its retail outlet for a certain period of time. This agreement often includes the following terms; duration of the agreement, terms of sale of the products, the percentage that each party will receive, payment options, the effects of non-sale and the liability of lost or damaged of goods.

Consumer Agreement

This is a contract between the Fashion business and the consumers concerning the sales of goods or supply or services (with or without goods). This agreement often includes the following terms; the terms of sales of the product, the payment options, quality assurance, liability for damaged goods.

There are various agreements which are applicable in the fashion industry, working with contracts will increase the likelihood that you will get paid and will protect you from liabilities.

In every step in your fashion business, consult your lawyer.

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