Wga Shopping Agreement

Unlike an option contract, a purchase contract does not confer any rights to the property itself on the producer. In that regard, a purchase contract is, in principle, a contract for services and not a contract for the purchase of property rights. Without property rights, a purchase contract is arguably easier for the owner to violate and therefore grants less protection to the producer. An owner could go behind the back of the producer and sell the rights to another party. The manufacturer would have no choice but to assert a claim for breach of contract. Conversely, the manufacturer has acquired an interest in the property under an option contract, which does not revert to the owner until after the option expires. Unlike option agreements, purchase agreements can be exclusive to a manufacturer or non-exclusive.