{"portalId":61352,"siteId":null,"id":26270983721,"slug":"articles/does-eo-insurance-protect-against-claims-of-breach-of-contract","contentTypeId":null,"contentGroupId":952267656,"campaign":null,"categoryId":3,"state":"PUBLISHED","publishDate":1587481230000,"created":1582571824591,"updated":1649858971168,"templatePath":"","name":"<span id=\"hs_cos_wrapper_name\" class=\"hs_cos_wrapper hs_cos_wrapper_meta_field hs_cos_wrapper_type_text\" style=\"\" data-hs-cos-general-type=\"meta_field\" data-hs-cos-type=\"text\" >Does film producer's E&O insurance protect against claims of breach of contract?</span>","mabExperimentId":null,"archived":false,"authorName":null,"deletedAt":0,"freezeDate":1587481230000,"processingStatus":"PUBLISHED","previewKey":"uQIJeYaF","abTestId":null,"createdById":7915797,"updatedById":7915797,"domain":"","resolvedDomain":"www.frontrowinsurance.com","legacyId":null,"performableGuid":null,"isDraft":false,"subcategory":"normal_blog_post","abStatus":null,"blueprintTypeId":0,"folderId":null,"analyticsPageId":"26270983721","flexAreas":{},"widgetContainers":{},"widgets":{"name":{"body":{"title":"Does film producer's E&O insurance protect against claims of breach of contract?"},"id":"name","name":"name","type":"text","label":"Title"},"module_15965216980304":{"body":{"wrap_field_tag":"div","path":"/Coded files/Custom/blog/FrontRow2014/Basic Rich Text Box for Blog","definition_id":null,"module_id":33156769794,"smart_type":"NOT_SMART","field_types":{"add_content":"richtext","enable_rich_text_module":"boolean"},"type":"module","tag":"module","smart_objects":null},"css":{},"child_css":{},"id":"module_15965216980304","name":"module_15965216980304","type":"module","order":5,"label":"Basic Rich Text Box for Blog","smart_type":null,"styles":{},"module_id":33156769794},"module_156398965931111":{"body":{"path":"/Marketplace/HubSpot/Team_Member/Team Member","widget_name":"Team Member","definition_id":null,"wrapping_html":"","module_id":8696351,"per_widget_wrapper_html":"","smart_type":"NOT_SMART","type":"module","tag":"module","smart_objects":null},"css":{},"child_css":{},"id":"module_156398965931111","name":"module_156398965931111","type":"module","order":9,"label":"Team Member","smart_type":null,"styles":{},"module_id":8696351,"deleted_at":1649858970269},"module_15960847531069":{"body":{"wrap_field_tag":"div","path":"/Coded files/Custom/blog/FrontRow2014/Blog Subscribe New Module 2020","definition_id":null,"module_id":33051772119,"smart_type":"NOT_SMART","field_types":{"add_form":"form","add_form_title":"text","enable_form":"boolean"},"type":"module","tag":"module","smart_objects":null},"css":{},"child_css":{},"id":"module_15960847531069","name":"module_15960847531069","type":"module","order":4,"label":"Blog Subscribe New Module 2020","smart_type":null,"styles":{},"module_id":33051772119,"deleted_at":1649858970269},"post_body":{"body":{"html":"<h1>DOES film producer's E&amp;O INSURANCE PROTECT AGAINST CLAIMS OF BREACH OF CONTRACT?</h1>\n<h2>WHAT TO KNOW ABOUT <em>IMPLIED-IN-FACT</em> AGREEMENTS | IMPLIED CONTRACTS | IMPLIED TERMS</h2>\n<h3><span>E&amp;O INSURANCE FILM | ERRORS AND OMISSIONS INSURANCE FILM:</span></h3>\n<div class=\"hs-responsive-embed-wrapper hs-responsive-embed\" style=\"width: 100%; height: auto; position: relative; overflow: hidden; padding: 0; max-width: 560px; max-height: 315px; min-width: 256px; margin: 0px auto; display: block;\">\n<div class=\"hs-responsive-embed-inner-wrapper\" style=\"position: relative; overflow: hidden; max-width: 100%; padding-bottom: 56.25%; margin: 0;\"><iframe class=\"hs-responsive-embed-iframe\" style=\"position: absolute; top: 0; left: 0; width: 100%; height: 100%; border: none;\" allow=\"accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture\" xml=\"lang\" src=\"https://www.youtube.com/embed/hYKrx112vSc?controls=0\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\" data-service=\"youtube\"></iframe></div>\n</div>\n<!--more-->\n<p><strong><br>Kailin Che (Lawyer)</strong>: An <a href=\"/sectors/e-o-insurance\" rel=\" noopener\"><u>E&amp;O policy</u></a> does <strong>not</strong> cover claims relating to breaches of contract, <em>e.g., </em>if a producer breaches a contract provision with a writer, that won’t be covered by E&amp;O insurance. There is a narrow exception to this rule and that’s in <a href=\"https://en.wikipedia.org/wiki/Implied-in-fact_contract\" rel=\" noopener\"><u>implied-in-fact agreements</u></a>; those will be covered by E&amp;O insurance.</p>\n<p>So, a producer must assess whether or not there were any implied contracts that were established through conduct. Often, people think submission of an idea is sufficient to constitute implied-in-fact contracts; that’s not correct.</p>\n<h2>there are two clear requirements for establishing implied-in-fact contracts:</h2>\n<ol>\n<li>the person who is sharing the idea must express the expectation to be compensated prior to sharing or if they share the idea.</li>\n<li>the recipient, <em style=\"font-size: 16px; background-color: transparent;\">e.g.,</em><span style=\"font-size: 16px; background-color: transparent;\"> the producer must know that there is this expectation of compensation and then voluntarily accepts the receipt of the idea.</span></li>\n</ol>\n<p>So, in terms of limiting your potential liability in an implied-in-fact agreement, it’s possible if a producer ensures that every person who comes before them to submit any sort of idea signs an <a href=\"https://docs.google.com/document/d/1Qw_zQSvCTnilwLJkQ7mgscqwbpGtPBKYU7XGIsCyxjM/edit?usp=sharing\" rel=\" noopener\"><strong>Idea Release Submission Form</strong></a>. <span style=\"font-style: italic;\">[<span style=\"font-weight: bold;\">template credit</span>: Early Sullivan Wright Gizer &amp; McRae LLP]</span></p>\n<p><em>&nbsp;</em></p>\n<h4 class=\"p1\">Related:</h4>\n<ul class=\"ul1\">\n<li class=\"li2\"><a href=\"/articles/avatar-producer-recieves-credit-where-credit-is-earned-thanks-to-eo-insurance\" rel=\" noopener\"><span class=\"s3\">Producer's E&amp;O and <span style=\"font-style: italic;\">Avatar</span></span></a></li>\n<li class=\"li2\"><a href=\"/articles/articles/bid/27709/film-eo-insurance-clearances-procedures-for-film-producers-part-1-of-3\" rel=\" noopener\"><span class=\"s3\">E&amp;O clearance process</span></a></li>\n<li class=\"li2\"><span class=\"s3\">Videos: <a href=\"https://www.youtube.com/playlist?list=PLJtqQkUwXbijsssso5zHGE9Qu8e8pimA0\" rel=\" noopener\">Errors and omissions insurance (E&amp;O) - Kailin Che</a></span></li>\n<li class=\"li2\"><a href=\"/articles/articles/bid/66030/film-and-tv-producers-errors-and-omissions-insurance-cost\" rel=\" noopener\"><span class=\"s3\">E&amp;O Insurance Cost</span></a></li>\n<li class=\"li2\"><a href=\"/errors-omissions-insurance-101\" rel=\" noopener\"><span class=\"s3\">eBook: E&amp;O Insurance 101</span></a></li>\n</ul>\n<p class=\"p1\"><strong><i>About</i></strong><i>: Kailin Che is a corporate/commercial lawyer who represents clients in a broad range of industries including, technology, entertainment, manufacturing and real estate. She has advised clients on a variety of endeavors, including mergers and acquisitions, financing, reorganizations, corporate governance and regulatory compliance. Kailin began her legal career at a global law firm in Toronto and is licensed to practice in both Ontario and British Columbia.</i><i></i></p>"},"id":"post_body","name":"post_body","type":"rich_text","label":"Blog 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Che","translations":{},"cosObjectType":"BLOG_AUTHOR","bio":"","website":"","twitter":"","facebook":"","linkedin":"","avatar":"","gravatarUrl":null,"twitterUsername":"","hasSocialProfiles":false,"displayName":"Kailin Che","label":"Kailin Che","cdnPurgeEmbargoTime":null},"previousPostSlug":"articles/fair-use-vs.-fair-dealing","previousPostName":"E&O considerations for US-based filmmaker vs. Canada-based filmmaker","previousPostFeaturedImage":"https://cdn2.hubspot.net/hubfs/61352/blog-image-uploads/videostills/kailin-thumb-forweb2.jpg","previousPostFeaturedImageAltText":"Kailin Che, lawyer | Fair use vs. fair dealing","nextPostSlug":"articles/insurance-for-photos-booths-photo-booth-insurance-from-front-row","nextPostName":"Insurance for Photos Booths | Photo Booth Insurance from Front 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Che","cdnPurgeEmbargoTime":null},"tagIds":[949708924,949708959],"topicIds":[949708924,949708959],"topicList":[{"id":949708924,"portalId":61352,"name":"Film Producer's E&O Insurance","slug":"film-producers-eo-insurance","description":"","created":1401901730000,"updated":1649856909544,"deletedAt":0,"categoryId":0,"contentIds":[],"language":"en","translatedFromId":null,"translations":{},"cosObjectType":"TAG","label":"Film Producer's E&O Insurance","cdnPurgeEmbargoTime":null},{"id":949708959,"portalId":61352,"name":"Film Insurance claims","slug":"film-insurance-claims","description":"","created":1401901736000,"updated":1649863497991,"deletedAt":0,"categoryId":0,"contentIds":[],"language":"en","translatedFromId":null,"translations":{},"cosObjectType":"TAG","label":"Film Insurance claims","cdnPurgeEmbargoTime":null}],"tagNames":["Film Producer's E&O Insurance","Film Insurance claims"],"topicNames":["Film Producer's E&O Insurance","Film Insurance claims"],"areCommentsAllowed":true,"isCaptchaRequired":true,"syncedWithBlogRoot":true,"enableGoogleAmpOutputOverride":false,"generateJsonLdEnabledOverride":true,"compositionId":0,"useFeaturedImage":true,"htmlTitle":"Does film producer's E&O insurance protect against claims of breach of contract?","contentGroup":952267656,"publishDateLocalized":{"format":"medium","language":"en_US","date":1587481230000},"postTemplate":"prox_frontrow/templates/blog/blog-post.html","listTemplate":"prox_frontrow/templates/blog/blog-listing.html","postBody":"<span id=\"hs_cos_wrapper_post_body\" class=\"hs_cos_wrapper hs_cos_wrapper_meta_field hs_cos_wrapper_type_rich_text\" style=\"\" data-hs-cos-general-type=\"meta_field\" data-hs-cos-type=\"rich_text\" ><h2>WHAT TO KNOW ABOUT <em>IMPLIED-IN-FACT</em> AGREEMENTS | IMPLIED CONTRACTS | IMPLIED TERMS</h2>\n<h3>E&amp;O INSURANCE FILM | ERRORS AND OMISSIONS INSURANCE FILM:</h3>\n<div class=\"hs-responsive-embed-wrapper hs-responsive-embed\" style=\"width: 100%; height: auto; position: relative; overflow: hidden; padding: 0; max-width: 560px; max-height: 315px; min-width: 256px; margin: 0px auto; display: block;\">\n<div class=\"hs-responsive-embed-inner-wrapper\" style=\"position: relative; overflow: hidden; max-width: 100%; padding-bottom: 56.25%; margin: 0;\"><iframe class=\"hs-responsive-embed-iframe\" style=\"position: absolute; top: 0; left: 0; width: 100%; height: 100%; border: none;\" allow=\"accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture\" xml=\"lang\" src=\"https://www.youtube.com/embed/hYKrx112vSc?controls=0\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\" data-service=\"youtube\"></iframe></div>\n</div>\n<!--more-->\n<p><strong><br>Kailin Che (Lawyer)</strong>: An <a href=\"/sectors/e-o-insurance\" rel=\" noopener\"><u>E&amp;O policy</u></a> does <strong>not</strong> cover claims relating to breaches of contract, <em>e.g., </em>if a producer breaches a contract provision with a writer, that won’t be covered by E&amp;O insurance. There is a narrow exception to this rule and that’s in <a href=\"https://en.wikipedia.org/wiki/Implied-in-fact_contract\" rel=\" noopener\"><u>implied-in-fact agreements</u></a>; those will be covered by E&amp;O insurance.</p>\n<p>So, a producer must assess whether or not there were any implied contracts that were established through conduct. Often, people think submission of an idea is sufficient to constitute implied-in-fact contracts; that’s not correct.</p>\n<h2>there are two clear requirements for establishing implied-in-fact contracts:</h2>\n<ol>\n<li>the person who is sharing the idea must express the expectation to be compensated prior to sharing or if they share the idea.</li>\n<li>the recipient, <em style=\"font-size: 16px; background-color: transparent;\">e.g.,</em> the producer must know that there is this expectation of compensation and then voluntarily accepts the receipt of the idea.</li>\n</ol>\n<p>So, in terms of limiting your potential liability in an implied-in-fact agreement, it’s possible if a producer ensures that every person who comes before them to submit any sort of idea signs an <a href=\"https://docs.google.com/document/d/1Qw_zQSvCTnilwLJkQ7mgscqwbpGtPBKYU7XGIsCyxjM/edit?usp=sharing\" rel=\" noopener\"><strong>Idea Release Submission Form</strong></a>. <span style=\"font-style: italic;\">[<span style=\"font-weight: bold;\">template credit</span>: Early Sullivan Wright Gizer &amp; McRae LLP]</span></p>\n<p><em>&nbsp;</em></p>\n<h4 class=\"p1\">Related:</h4>\n<ul class=\"ul1\">\n<li class=\"li2\"><a href=\"/articles/avatar-producer-recieves-credit-where-credit-is-earned-thanks-to-eo-insurance\" rel=\" noopener\"><span class=\"s3\">Producer's E&amp;O and <span style=\"font-style: italic;\">Avatar</span></span></a></li>\n<li class=\"li2\"><a href=\"/articles/articles/bid/27709/film-eo-insurance-clearances-procedures-for-film-producers-part-1-of-3\" rel=\" noopener\"><span class=\"s3\">E&amp;O clearance process</span></a></li>\n<li class=\"li2\"><span class=\"s3\">Videos: <a href=\"https://www.youtube.com/playlist?list=PLJtqQkUwXbijsssso5zHGE9Qu8e8pimA0\" rel=\" noopener\">Errors and omissions insurance (E&amp;O) - Kailin Che</a></span></li>\n<li class=\"li2\"><a href=\"/articles/articles/bid/66030/film-and-tv-producers-errors-and-omissions-insurance-cost\" rel=\" noopener\"><span class=\"s3\">E&amp;O Insurance Cost</span></a></li>\n<li class=\"li2\"><a href=\"/errors-omissions-insurance-101\" rel=\" noopener\"><span class=\"s3\">eBook: E&amp;O Insurance 101</span></a></li>\n</ul>\n<p class=\"p1\"><span style=\"font-size: 16px;\"><strong><i>About</i></strong><i>: Kailin Che is a corporate/commercial lawyer who represents clients in a broad range of industries including, technology, entertainment, manufacturing and real estate. She has advised clients on a variety of endeavors, including mergers and acquisitions, financing, reorganizations, corporate governance and regulatory compliance. Kailin began her legal career at a global law firm in Toronto and is licensed to practice in both Ontario and British Columbia.</i></span><i></i></p></span>","postSummary":"<h2>WHAT TO KNOW ABOUT <em>IMPLIED-IN-FACT</em> AGREEMENTS | IMPLIED CONTRACTS | IMPLIED TERMS</h2>\n<h3>E&amp;O INSURANCE FILM | ERRORS AND OMISSIONS INSURANCE FILM:</h3>\n<div class=\"hs-responsive-embed-wrapper hs-responsive-embed\" style=\"width: 100%; height: auto; position: relative; overflow: hidden; padding: 0; max-width: 560px; max-height: 315px; min-width: 256px; margin: 0px auto; display: block;\">\n<div class=\"hs-responsive-embed-inner-wrapper\" style=\"position: relative; overflow: hidden; max-width: 100%; padding-bottom: 56.25%; margin: 0;\"><iframe class=\"hs-responsive-embed-iframe\" style=\"position: absolute; top: 0; left: 0; width: 100%; height: 100%; border: none;\" allow=\"accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture\" xml=\"lang\" src=\"https://www.youtube.com/embed/hYKrx112vSc?controls=0\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen data-service=\"youtube\"></iframe></div>\n</div>\n","blogPostScheduleTaskUid":null,"blogPublishToSocialMediaTask":"DONE","blogPublishInstantEmailTaskUid":"DONE","blogPublishInstantEmailCampaignId":null,"blogPublishInstantEmailRetryCount":null,"postListContent":"<span id=\"hs_cos_wrapper_post_body\" class=\"hs_cos_wrapper hs_cos_wrapper_meta_field hs_cos_wrapper_type_rich_text\" style=\"\" data-hs-cos-general-type=\"meta_field\" data-hs-cos-type=\"rich_text\" ><h2>WHAT TO KNOW ABOUT <em>IMPLIED-IN-FACT</em> AGREEMENTS | IMPLIED CONTRACTS | IMPLIED TERMS</h2>\n<h3>E&amp;O INSURANCE FILM | ERRORS AND OMISSIONS INSURANCE FILM:</h3>\n<div class=\"hs-responsive-embed-wrapper hs-responsive-embed\" style=\"width: 100%; height: auto; position: relative; overflow: hidden; padding: 0; max-width: 560px; max-height: 315px; min-width: 256px; margin: 0px auto; display: block;\">\n<div class=\"hs-responsive-embed-inner-wrapper\" style=\"position: relative; overflow: hidden; max-width: 100%; padding-bottom: 56.25%; margin: 0;\"><iframe class=\"hs-responsive-embed-iframe\" style=\"position: absolute; top: 0; left: 0; width: 100%; height: 100%; border: none;\" allow=\"accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture\" xml=\"lang\" src=\"https://www.youtube.com/embed/hYKrx112vSc?controls=0\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\" data-service=\"youtube\"></iframe></div>\n</div>\n<!--more-->\n<p><strong><br>Kailin Che (Lawyer)</strong>: An <a href=\"/sectors/e-o-insurance\" rel=\" noopener\"><u>E&amp;O policy</u></a> does <strong>not</strong> cover claims relating to breaches of contract, <em>e.g., </em>if a producer breaches a contract provision with a writer, that won’t be covered by E&amp;O insurance. There is a narrow exception to this rule and that’s in <a href=\"https://en.wikipedia.org/wiki/Implied-in-fact_contract\" rel=\" noopener\"><u>implied-in-fact agreements</u></a>; those will be covered by E&amp;O insurance.</p>\n<p>So, a producer must assess whether or not there were any implied contracts that were established through conduct. Often, people think submission of an idea is sufficient to constitute implied-in-fact contracts; that’s not correct.</p>\n<h2>there are two clear requirements for establishing implied-in-fact contracts:</h2>\n<ol>\n<li>the person who is sharing the idea must express the expectation to be compensated prior to sharing or if they share the idea.</li>\n<li>the recipient, <em style=\"font-size: 16px; background-color: transparent;\">e.g.,</em> the producer must know that there is this expectation of compensation and then voluntarily accepts the receipt of the idea.</li>\n</ol>\n<p>So, in terms of limiting your potential liability in an implied-in-fact agreement, it’s possible if a producer ensures that every person who comes before them to submit any sort of idea signs an <a href=\"https://docs.google.com/document/d/1Qw_zQSvCTnilwLJkQ7mgscqwbpGtPBKYU7XGIsCyxjM/edit?usp=sharing\" rel=\" noopener\"><strong>Idea Release Submission Form</strong></a>. <span style=\"font-style: italic;\">[<span style=\"font-weight: bold;\">template credit</span>: Early Sullivan Wright Gizer &amp; McRae LLP]</span></p>\n<p><em>&nbsp;</em></p>\n<h4 class=\"p1\">Related:</h4>\n<ul class=\"ul1\">\n<li class=\"li2\"><a href=\"/articles/avatar-producer-recieves-credit-where-credit-is-earned-thanks-to-eo-insurance\" rel=\" noopener\"><span class=\"s3\">Producer's E&amp;O and <span style=\"font-style: italic;\">Avatar</span></span></a></li>\n<li class=\"li2\"><a href=\"/articles/articles/bid/27709/film-eo-insurance-clearances-procedures-for-film-producers-part-1-of-3\" rel=\" noopener\"><span class=\"s3\">E&amp;O clearance process</span></a></li>\n<li class=\"li2\"><span class=\"s3\">Videos: <a href=\"https://www.youtube.com/playlist?list=PLJtqQkUwXbijsssso5zHGE9Qu8e8pimA0\" rel=\" noopener\">Errors and omissions insurance (E&amp;O) - Kailin Che</a></span></li>\n<li class=\"li2\"><a href=\"/articles/articles/bid/66030/film-and-tv-producers-errors-and-omissions-insurance-cost\" rel=\" noopener\"><span class=\"s3\">E&amp;O Insurance Cost</span></a></li>\n<li class=\"li2\"><a href=\"/errors-omissions-insurance-101\" rel=\" noopener\"><span class=\"s3\">eBook: E&amp;O Insurance 101</span></a></li>\n</ul>\n<p class=\"p1\"><span style=\"font-size: 16px;\"><strong><i>About</i></strong><i>: Kailin Che is a corporate/commercial lawyer who represents clients in a broad range of industries including, technology, entertainment, manufacturing and real estate. She has advised clients on a variety of endeavors, including mergers and acquisitions, financing, reorganizations, corporate governance and regulatory compliance. Kailin began her legal career at a global law firm in Toronto and is licensed to practice in both Ontario and British Columbia.</i></span><i></i></p></span>","postEmailContent":"<h2>WHAT TO KNOW ABOUT <em>IMPLIED-IN-FACT</em> AGREEMENTS | IMPLIED CONTRACTS | IMPLIED TERMS</h2> \n<h3>E&amp;O INSURANCE FILM | ERRORS AND OMISSIONS INSURANCE FILM:</h3> \n<div class=\"hs-responsive-embed-wrapper hs-responsive-embed\" style=\"width: 100%; height: auto; position: relative; overflow: hidden; padding: 0; max-width: 560px; max-height: 315px; min-width: 256px; margin: 0px auto; display: block;\"> \n <div class=\"hs-responsive-embed-inner-wrapper\" style=\"position: relative; overflow: hidden; max-width: 100%; padding-bottom: 56.25%; margin: 0;\">\n <iframe class=\"hs-responsive-embed-iframe\" style=\"position: absolute; top: 0; left: 0; width: 100%; height: 100%; border: none;\" allow=\"accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture\" xml=\"lang\" src=\"https://www.youtube.com/embed/hYKrx112vSc?controls=0\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen data-service=\"youtube\"></iframe>\n </div> \n</div>","postSummaryRss":"<h2>WHAT TO KNOW ABOUT <em>IMPLIED-IN-FACT</em> AGREEMENTS | IMPLIED CONTRACTS | IMPLIED TERMS</h2> \n<h3>E&amp;O INSURANCE FILM | ERRORS AND OMISSIONS INSURANCE FILM:</h3> \n<div class=\"hs-responsive-embed-wrapper hs-responsive-embed\" style=\"width: 100%; height: auto; position: relative; overflow: hidden; padding: 0; max-width: 560px; max-height: 315px; min-width: 256px; margin: 0px auto; display: block;\"> \n <div class=\"hs-responsive-embed-inner-wrapper\" style=\"position: relative; overflow: hidden; max-width: 100%; padding-bottom: 56.25%; margin: 0;\">\n <iframe class=\"hs-responsive-embed-iframe\" style=\"position: absolute; top: 0; left: 0; width: 100%; height: 100%; border: none;\" allow=\"accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture\" xml=\"lang\" src=\"https://www.youtube.com/embed/hYKrx112vSc?controls=0\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen data-service=\"youtube\"></iframe>\n </div> \n</div>","postBodyRss":"<h2>WHAT TO KNOW ABOUT <em>IMPLIED-IN-FACT</em> AGREEMENTS | IMPLIED CONTRACTS | IMPLIED TERMS</h2>\n<h3>E&amp;O INSURANCE FILM | ERRORS AND OMISSIONS INSURANCE FILM:</h3>\n<div class=\"hs-responsive-embed-wrapper hs-responsive-embed\" style=\"width: 100%; height: auto; position: relative; overflow: hidden; padding: 0; max-width: 560px; max-height: 315px; min-width: 256px; margin: 0px auto; display: block;\">\n<div class=\"hs-responsive-embed-inner-wrapper\" style=\"position: relative; overflow: hidden; max-width: 100%; padding-bottom: 56.25%; margin: 0;\"><iframe class=\"hs-responsive-embed-iframe\" style=\"position: absolute; top: 0; left: 0; width: 100%; height: 100%; border: none;\" allow=\"accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture\" xml=\"lang\" src=\"https://www.youtube.com/embed/hYKrx112vSc?controls=0\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\" data-service=\"youtube\"></iframe></div>\n</div>\n<!--more-->\n<p><strong><br>Kailin Che (Lawyer)</strong>: An <a href=\"/sectors/e-o-insurance\" rel=\" noopener\"><u>E&amp;O policy</u></a> does <strong>not</strong> cover claims relating to breaches of contract, <em>e.g., </em>if a producer breaches a contract provision with a writer, that won’t be covered by E&amp;O insurance. There is a narrow exception to this rule and that’s in <a href=\"https://en.wikipedia.org/wiki/Implied-in-fact_contract\" rel=\" noopener\"><u>implied-in-fact agreements</u></a>; those will be covered by E&amp;O insurance.</p>\n<p>So, a producer must assess whether or not there were any implied contracts that were established through conduct. Often, people think submission of an idea is sufficient to constitute implied-in-fact contracts; that’s not correct.</p>\n<h2>there are two clear requirements for establishing implied-in-fact contracts:</h2>\n<ol>\n<li>the person who is sharing the idea must express the expectation to be compensated prior to sharing or if they share the idea.</li>\n<li>the recipient, <em style=\"font-size: 16px; background-color: transparent;\">e.g.,</em> the producer must know that there is this expectation of compensation and then voluntarily accepts the receipt of the idea.</li>\n</ol>\n<p>So, in terms of limiting your potential liability in an implied-in-fact agreement, it’s possible if a producer ensures that every person who comes before them to submit any sort of idea signs an <a href=\"https://docs.google.com/document/d/1Qw_zQSvCTnilwLJkQ7mgscqwbpGtPBKYU7XGIsCyxjM/edit?usp=sharing\" rel=\" noopener\"><strong>Idea Release Submission Form</strong></a>. <span style=\"font-style: italic;\">[<span style=\"font-weight: bold;\">template credit</span>: Early Sullivan Wright Gizer &amp; McRae LLP]</span></p>\n<p><em>&nbsp;</em></p>\n<h4 class=\"p1\">Related:</h4>\n<ul class=\"ul1\">\n<li class=\"li2\"><a href=\"/articles/avatar-producer-recieves-credit-where-credit-is-earned-thanks-to-eo-insurance\" rel=\" noopener\"><span class=\"s3\">Producer's E&amp;O and <span style=\"font-style: italic;\">Avatar</span></span></a></li>\n<li class=\"li2\"><a href=\"/articles/articles/bid/27709/film-eo-insurance-clearances-procedures-for-film-producers-part-1-of-3\" rel=\" noopener\"><span class=\"s3\">E&amp;O clearance process</span></a></li>\n<li class=\"li2\"><span class=\"s3\">Videos: <a href=\"https://www.youtube.com/playlist?list=PLJtqQkUwXbijsssso5zHGE9Qu8e8pimA0\" rel=\" noopener\">Errors and omissions insurance (E&amp;O) - Kailin Che</a></span></li>\n<li class=\"li2\"><a href=\"/articles/articles/bid/66030/film-and-tv-producers-errors-and-omissions-insurance-cost\" rel=\" noopener\"><span class=\"s3\">E&amp;O Insurance Cost</span></a></li>\n<li class=\"li2\"><a href=\"/errors-omissions-insurance-101\" rel=\" noopener\"><span class=\"s3\">eBook: E&amp;O Insurance 101</span></a></li>\n</ul>\n<p class=\"p1\"><span style=\"font-size: 16px;\"><strong><i>About</i></strong><i>: Kailin Che is a corporate/commercial lawyer who represents clients in a broad range of industries including, technology, entertainment, manufacturing and real estate. She has advised clients on a variety of endeavors, including mergers and acquisitions, financing, reorganizations, corporate governance and regulatory compliance. Kailin began her legal career at a global law firm in Toronto and is licensed to practice in both Ontario and British Columbia.</i></span><i></i></p>","postRssContent":"<h2>WHAT TO KNOW ABOUT <em>IMPLIED-IN-FACT</em> AGREEMENTS | IMPLIED CONTRACTS | IMPLIED TERMS</h2> \n<h3>E&amp;O INSURANCE FILM | ERRORS AND OMISSIONS INSURANCE FILM:</h3> \n<div class=\"hs-responsive-embed-wrapper hs-responsive-embed\" style=\"width: 100%; height: auto; position: relative; overflow: hidden; padding: 0; max-width: 560px; max-height: 315px; min-width: 256px; margin: 0px auto; display: block;\"> \n <div class=\"hs-responsive-embed-inner-wrapper\" style=\"position: relative; overflow: hidden; max-width: 100%; padding-bottom: 56.25%; margin: 0;\">\n <iframe class=\"hs-responsive-embed-iframe\" style=\"position: absolute; top: 0; left: 0; width: 100%; height: 100%; border: none;\" allow=\"accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture\" xml=\"lang\" src=\"https://www.youtube.com/embed/hYKrx112vSc?controls=0\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen data-service=\"youtube\"></iframe>\n </div> \n</div>","rssSummaryFeaturedImage":"https://cdn2.hubspot.net/hubfs/61352/blog-image-uploads/videostills/kailin-thumb-forweb2.jpg","rssBody":"<h2>WHAT TO KNOW ABOUT <em>IMPLIED-IN-FACT</em> AGREEMENTS | IMPLIED CONTRACTS | IMPLIED TERMS</h2>\n<h3>E&amp;O INSURANCE FILM | ERRORS AND OMISSIONS INSURANCE FILM:</h3>\n<div class=\"hs-responsive-embed-wrapper hs-responsive-embed\" style=\"width: 100%; height: auto; position: relative; overflow: hidden; padding: 0; max-width: 560px; max-height: 315px; min-width: 256px; margin: 0px auto; display: block;\">\n<div class=\"hs-responsive-embed-inner-wrapper\" style=\"position: relative; overflow: hidden; max-width: 100%; padding-bottom: 56.25%; margin: 0;\"><iframe class=\"hs-responsive-embed-iframe\" style=\"position: absolute; top: 0; left: 0; width: 100%; height: 100%; border: none;\" allow=\"accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture\" xml=\"lang\" src=\"https://www.youtube.com/embed/hYKrx112vSc?controls=0\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\" data-service=\"youtube\"></iframe></div>\n</div>\n<!--more-->\n<p><strong><br>Kailin Che (Lawyer)</strong>: An <a href=\"/sectors/e-o-insurance\" rel=\" noopener\"><u>E&amp;O policy</u></a> does <strong>not</strong> cover claims relating to breaches of contract, <em>e.g., </em>if a producer breaches a contract provision with a writer, that won’t be covered by E&amp;O insurance. There is a narrow exception to this rule and that’s in <a href=\"https://en.wikipedia.org/wiki/Implied-in-fact_contract\" rel=\" noopener\"><u>implied-in-fact agreements</u></a>; those will be covered by E&amp;O insurance.</p>\n<p>So, a producer must assess whether or not there were any implied contracts that were established through conduct. Often, people think submission of an idea is sufficient to constitute implied-in-fact contracts; that’s not correct.</p>\n<h2>there are two clear requirements for establishing implied-in-fact contracts:</h2>\n<ol>\n<li>the person who is sharing the idea must express the expectation to be compensated prior to sharing or if they share the idea.</li>\n<li>the recipient, <em style=\"font-size: 16px; background-color: transparent;\">e.g.,</em> the producer must know that there is this expectation of compensation and then voluntarily accepts the receipt of the idea.</li>\n</ol>\n<p>So, in terms of limiting your potential liability in an implied-in-fact agreement, it’s possible if a producer ensures that every person who comes before them to submit any sort of idea signs an <a href=\"https://docs.google.com/document/d/1Qw_zQSvCTnilwLJkQ7mgscqwbpGtPBKYU7XGIsCyxjM/edit?usp=sharing\" rel=\" noopener\"><strong>Idea Release Submission Form</strong></a>. <span style=\"font-style: italic;\">[<span style=\"font-weight: bold;\">template credit</span>: Early Sullivan Wright Gizer &amp; McRae LLP]</span></p>\n<p><em>&nbsp;</em></p>\n<h4 class=\"p1\">Related:</h4>\n<ul class=\"ul1\">\n<li class=\"li2\"><a href=\"/articles/avatar-producer-recieves-credit-where-credit-is-earned-thanks-to-eo-insurance\" rel=\" noopener\"><span class=\"s3\">Producer's E&amp;O and <span style=\"font-style: italic;\">Avatar</span></span></a></li>\n<li class=\"li2\"><a href=\"/articles/articles/bid/27709/film-eo-insurance-clearances-procedures-for-film-producers-part-1-of-3\" rel=\" noopener\"><span class=\"s3\">E&amp;O clearance process</span></a></li>\n<li class=\"li2\"><span class=\"s3\">Videos: <a href=\"https://www.youtube.com/playlist?list=PLJtqQkUwXbijsssso5zHGE9Qu8e8pimA0\" rel=\" noopener\">Errors and omissions insurance (E&amp;O) - Kailin Che</a></span></li>\n<li class=\"li2\"><a href=\"/articles/articles/bid/66030/film-and-tv-producers-errors-and-omissions-insurance-cost\" rel=\" noopener\"><span class=\"s3\">E&amp;O Insurance Cost</span></a></li>\n<li class=\"li2\"><a href=\"/errors-omissions-insurance-101\" rel=\" noopener\"><span class=\"s3\">eBook: E&amp;O Insurance 101</span></a></li>\n</ul>\n<p class=\"p1\"><span style=\"font-size: 16px;\"><strong><i>About</i></strong><i>: Kailin Che is a corporate/commercial lawyer who represents clients in a broad range of industries including, technology, entertainment, manufacturing and real estate. She has advised clients on a variety of endeavors, including mergers and acquisitions, financing, reorganizations, corporate governance and regulatory compliance. Kailin began her legal career at a global law firm in Toronto and is licensed to practice in both Ontario and British Columbia.</i></span><i></i></p>","rssSummary":"<h2>WHAT TO KNOW ABOUT <em>IMPLIED-IN-FACT</em> AGREEMENTS | IMPLIED CONTRACTS | IMPLIED TERMS</h2>\n<h3>E&amp;O INSURANCE FILM | ERRORS AND OMISSIONS INSURANCE FILM:</h3>\n<div class=\"hs-responsive-embed-wrapper hs-responsive-embed\" style=\"width: 100%; height: auto; position: relative; overflow: hidden; padding: 0; max-width: 560px; max-height: 315px; min-width: 256px; margin: 0px auto; display: block;\">\n<div class=\"hs-responsive-embed-inner-wrapper\" style=\"position: relative; overflow: hidden; max-width: 100%; padding-bottom: 56.25%; margin: 0;\"><iframe class=\"hs-responsive-embed-iframe\" style=\"position: absolute; top: 0; left: 0; width: 100%; height: 100%; border: none;\" allow=\"accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture\" xml=\"lang\" src=\"https://www.youtube.com/embed/hYKrx112vSc?controls=0\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen data-service=\"youtube\"></iframe></div>\n</div>\n","postFeaturedImageIfEnabled":"https://cdn2.hubspot.net/hubfs/61352/blog-image-uploads/videostills/kailin-thumb-forweb2.jpg","postListSummaryFeaturedImage":"","postRssSummaryFeaturedImage":"https://cdn2.hubspot.net/hubfs/61352/blog-image-uploads/videostills/kailin-thumb-forweb2.jpg","keywords":[],"audienceAccess":"PUBLIC","templatePathForRender":"prox_frontrow/templates/blog/blog-post.html","header":null,"url":"https://www.frontrowinsurance.com/articles/does-eo-insurance-protect-against-claims-of-breach-of-contract","title":"Does film producer's E&O insurance protect against claims of breach of contract?","publishedAt":1649858971162,"authorUsername":null,"publicAccessRulesEnabled":false,"publicAccessRules":[],"enableLayoutStylesheets":null,"tweet":null,"tweetAt":null,"campaignName":null,"campaignUtm":null,"metaKeywords":null,"metaDescription":"An E&O policy does not cover claims relating to breaches of contract, e.g., if a producer breaches a contract with a writer, that won’t be covered by E&O.","tweetImmediately":false,"publishImmediately":true,"securityState":"NONE","scheduledUpdateDate":0,"allowedSlugConflict":false,"analyticsPageType":"blog-post","ab":false,"abVariation":false,"abVariationAutomated":false,"mab":false,"mabMaster":false,"mabVariant":false,"publishDateLocalTime":1587481230000,"linkRelCanonicalUrl":null,"publishedUrl":"https://www.frontrowinsurance.com/articles/does-eo-insurance-protect-against-claims-of-breach-of-contract","pageRedirected":false,"pageExpiryEnabled":null,"pageExpiryDate":null,"pageExpiryRedirectId":null,"pageExpiryRedirectUrl":null,"translatedContent":{},"deletedBy":null,"stateWhenDeleted":null,"clonedFrom":null,"stagedFrom":null,"personas":[],"composeBody":null,"featuredImage":"https://cdn2.hubspot.net/hubfs/61352/blog-image-uploads/videostills/kailin-thumb-forweb2.jpg","featuredImageAltText":"Kailin Che (Lawyer)","featuredImageWidth":300,"featuredImageHeight":174,"publishTimezoneOffset":null,"layoutSections":{},"themeSettingsValues":null,"placementGuids":[],"propertyForDynamicPageTitle":null,"propertyForDynamicPageSlug":null,"propertyForDynamicPageMetaDescription":null,"propertyForDynamicPageFeaturedImage":null,"propertyForDynamicPageCanonicalUrl":null,"previewImageSrc":null,"legacyBlogTabid":null,"legacyPostGuid":null,"performableVariationLetter":null,"styleOverrideId":null,"hasUserChanges":true,"css":{},"cssText":"","createdTime":1582571824591,"unpublishedAt":0,"pastMabExperimentIds":[],"archivedInDashboard":false,"publishedById":7915797,"headHtml":"<!-- START - Generated by ClassySchema.org on Tue, 20 Oct 2020 17:14:26 GMT -->\n<script type=\"application/ld+json\">\n{\n\t\"@context\": \"http://schema.org\",\n\t\"@type\": \"VideoObject\",\n\t\"name\": \"How does an e&o clearance process protect against claims of breach of contract?\",\n\t\"description\": \"How does an e&o clearance process protect against claims of breach of contract? 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There is a narrow exception to this rule and that’s in <a href=\"https://en.wikipedia.org/wiki/Implied-in-fact_contract\" rel=\" noopener\"><u>implied-in-fact agreements</u></a>; those will be covered by E&amp;O insurance.</p>\n<p>So, a producer must assess whether or not there were any implied contracts that were established through conduct. Often, people think submission of an idea is sufficient to constitute implied-in-fact contracts; that’s not correct.</p>\n<h2>there are two clear requirements for establishing implied-in-fact contracts:</h2>\n<ol>\n<li>the person who is sharing the idea must express the expectation to be compensated prior to sharing or if they share the idea.</li>\n<li>the recipient, <em style=\"font-size: 16px; background-color: transparent;\">e.g.,</em> the producer must know that there is this expectation of compensation and then voluntarily accepts the receipt of the idea.</li>\n</ol>\n<p>So, in terms of limiting your potential liability in an implied-in-fact agreement, it’s possible if a producer ensures that every person who comes before them to submit any sort of idea signs an <a href=\"https://docs.google.com/document/d/1Qw_zQSvCTnilwLJkQ7mgscqwbpGtPBKYU7XGIsCyxjM/edit?usp=sharing\" rel=\" noopener\"><strong>Idea Release Submission Form</strong></a>. <span style=\"font-style: italic;\">[<span style=\"font-weight: bold;\">template credit</span>: Early Sullivan Wright Gizer &amp; McRae LLP]</span></p>\n<p><em>&nbsp;</em></p>\n<h4 class=\"p1\">Related:</h4>\n<ul class=\"ul1\">\n<li class=\"li2\"><a href=\"/articles/avatar-producer-recieves-credit-where-credit-is-earned-thanks-to-eo-insurance\" rel=\" noopener\"><span class=\"s3\">Producer's E&amp;O and <span style=\"font-style: italic;\">Avatar</span></span></a></li>\n<li class=\"li2\"><a href=\"/articles/articles/bid/27709/film-eo-insurance-clearances-procedures-for-film-producers-part-1-of-3\" rel=\" noopener\"><span class=\"s3\">E&amp;O clearance process</span></a></li>\n<li class=\"li2\"><span class=\"s3\">Videos: <a href=\"https://www.youtube.com/playlist?list=PLJtqQkUwXbijsssso5zHGE9Qu8e8pimA0\" rel=\" noopener\">Errors and omissions insurance (E&amp;O) - Kailin Che</a></span></li>\n<li class=\"li2\"><a href=\"/articles/articles/bid/66030/film-and-tv-producers-errors-and-omissions-insurance-cost\" rel=\" noopener\"><span class=\"s3\">E&amp;O Insurance Cost</span></a></li>\n<li class=\"li2\"><a href=\"/errors-omissions-insurance-101\" rel=\" noopener\"><span class=\"s3\">eBook: E&amp;O Insurance 101</span></a></li>\n</ul>\n<p class=\"p1\"><span style=\"font-size: 16px;\"><strong><i>About</i></strong><i>: Kailin Che is a corporate/commercial lawyer who represents clients in a broad range of industries including, technology, entertainment, manufacturing and real estate. She has advised clients on a variety of endeavors, including mergers and acquisitions, financing, reorganizations, corporate governance and regulatory compliance. Kailin began her legal career at a global law firm in Toronto and is licensed to practice in both Ontario and British Columbia.</i></span><i></i></p></span>","publish_immediately":true,"use_featured_image":true,"published_by_id":7915797,"published_at":1649858971162,"rss_body":"<h2>WHAT TO KNOW ABOUT <em>IMPLIED-IN-FACT</em> AGREEMENTS | IMPLIED CONTRACTS | IMPLIED TERMS</h2>\n<h3>E&amp;O INSURANCE FILM | ERRORS AND OMISSIONS INSURANCE FILM:</h3>\n<div class=\"hs-responsive-embed-wrapper hs-responsive-embed\" style=\"width: 100%; height: auto; position: relative; overflow: hidden; padding: 0; max-width: 560px; max-height: 315px; min-width: 256px; margin: 0px auto; display: block;\">\n<div class=\"hs-responsive-embed-inner-wrapper\" style=\"position: relative; overflow: hidden; max-width: 100%; padding-bottom: 56.25%; margin: 0;\"><iframe class=\"hs-responsive-embed-iframe\" style=\"position: absolute; top: 0; left: 0; width: 100%; height: 100%; border: none;\" allow=\"accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture\" xml=\"lang\" src=\"https://www.youtube.com/embed/hYKrx112vSc?controls=0\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\" data-service=\"youtube\"></iframe></div>\n</div>\n<!--more-->\n<p><strong><br>Kailin Che (Lawyer)</strong>: An <a href=\"/sectors/e-o-insurance\" rel=\" noopener\"><u>E&amp;O policy</u></a> does <strong>not</strong> cover claims relating to breaches of contract, <em>e.g., </em>if a producer breaches a contract provision with a writer, that won’t be covered by E&amp;O insurance. There is a narrow exception to this rule and that’s in <a href=\"https://en.wikipedia.org/wiki/Implied-in-fact_contract\" rel=\" noopener\"><u>implied-in-fact agreements</u></a>; those will be covered by E&amp;O insurance.</p>\n<p>So, a producer must assess whether or not there were any implied contracts that were established through conduct. Often, people think submission of an idea is sufficient to constitute implied-in-fact contracts; that’s not correct.</p>\n<h2>there are two clear requirements for establishing implied-in-fact contracts:</h2>\n<ol>\n<li>the person who is sharing the idea must express the expectation to be compensated prior to sharing or if they share the idea.</li>\n<li>the recipient, <em style=\"font-size: 16px; background-color: transparent;\">e.g.,</em> the producer must know that there is this expectation of compensation and then voluntarily accepts the receipt of the idea.</li>\n</ol>\n<p>So, in terms of limiting your potential liability in an implied-in-fact agreement, it’s possible if a producer ensures that every person who comes before them to submit any sort of idea signs an <a href=\"https://docs.google.com/document/d/1Qw_zQSvCTnilwLJkQ7mgscqwbpGtPBKYU7XGIsCyxjM/edit?usp=sharing\" rel=\" noopener\"><strong>Idea Release Submission Form</strong></a>. <span style=\"font-style: italic;\">[<span style=\"font-weight: bold;\">template credit</span>: Early Sullivan Wright Gizer &amp; McRae LLP]</span></p>\n<p><em>&nbsp;</em></p>\n<h4 class=\"p1\">Related:</h4>\n<ul class=\"ul1\">\n<li class=\"li2\"><a href=\"/articles/avatar-producer-recieves-credit-where-credit-is-earned-thanks-to-eo-insurance\" rel=\" noopener\"><span class=\"s3\">Producer's E&amp;O and <span style=\"font-style: italic;\">Avatar</span></span></a></li>\n<li class=\"li2\"><a href=\"/articles/articles/bid/27709/film-eo-insurance-clearances-procedures-for-film-producers-part-1-of-3\" rel=\" noopener\"><span class=\"s3\">E&amp;O clearance process</span></a></li>\n<li class=\"li2\"><span class=\"s3\">Videos: <a href=\"https://www.youtube.com/playlist?list=PLJtqQkUwXbijsssso5zHGE9Qu8e8pimA0\" rel=\" noopener\">Errors and omissions insurance (E&amp;O) - Kailin Che</a></span></li>\n<li class=\"li2\"><a href=\"/articles/articles/bid/66030/film-and-tv-producers-errors-and-omissions-insurance-cost\" rel=\" noopener\"><span class=\"s3\">E&amp;O Insurance Cost</span></a></li>\n<li class=\"li2\"><a href=\"/errors-omissions-insurance-101\" rel=\" noopener\"><span class=\"s3\">eBook: E&amp;O Insurance 101</span></a></li>\n</ul>\n<p class=\"p1\"><span style=\"font-size: 16px;\"><strong><i>About</i></strong><i>: Kailin Che is a corporate/commercial lawyer who represents clients in a broad range of industries including, technology, entertainment, manufacturing and real estate. She has advised clients on a variety of endeavors, including mergers and acquisitions, financing, reorganizations, corporate governance and regulatory compliance. Kailin began her legal career at a global law firm in Toronto and is licensed to practice in both Ontario and British Columbia.</i></span><i></i></p>","rss_summary":"<h2>WHAT TO KNOW ABOUT <em>IMPLIED-IN-FACT</em> AGREEMENTS | IMPLIED CONTRACTS | IMPLIED TERMS</h2>\n<h3>E&amp;O INSURANCE FILM | ERRORS AND OMISSIONS INSURANCE FILM:</h3>\n<div class=\"hs-responsive-embed-wrapper hs-responsive-embed\" style=\"width: 100%; height: auto; position: relative; overflow: hidden; padding: 0; max-width: 560px; max-height: 315px; min-width: 256px; margin: 0px auto; display: block;\">\n<div class=\"hs-responsive-embed-inner-wrapper\" style=\"position: relative; overflow: hidden; max-width: 100%; padding-bottom: 56.25%; margin: 0;\"><iframe class=\"hs-responsive-embed-iframe\" style=\"position: absolute; top: 0; left: 0; width: 100%; height: 100%; border: none;\" allow=\"accelerometer; autoplay; encrypted-media; gyroscope; picture-in-picture\" xml=\"lang\" src=\"https://www.youtube.com/embed/hYKrx112vSc?controls=0\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen data-service=\"youtube\"></iframe></div>\n</div>\n","blog_publish_instant_email_task_uid":"DONE","blog_publish_to_social_media_task":"DONE","head_html":"<!-- START - Generated by ClassySchema.org on Tue, 20 Oct 2020 17:14:26 GMT -->\n<script type=\"application/ld+json\">\n{\n\t\"@context\": \"http://schema.org\",\n\t\"@type\": \"VideoObject\",\n\t\"name\": \"How does an e&o clearance process protect against claims of breach of contract?\",\n\t\"description\": \"How does an e&o clearance process protect against claims of breach of contract? 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Does film producer's E&O insurance protect against claims of breach of contract?

Kailin Che (Lawyer)

WHAT TO KNOW ABOUT IMPLIED-IN-FACT AGREEMENTS | IMPLIED CONTRACTS | IMPLIED TERMS

E&O INSURANCE FILM | ERRORS AND OMISSIONS INSURANCE FILM:


Kailin Che (Lawyer)
: An E&O policy does not cover claims relating to breaches of contract, e.g., if a producer breaches a contract provision with a writer, that won’t be covered by E&O insurance. There is a narrow exception to this rule and that’s in implied-in-fact agreements; those will be covered by E&O insurance.

So, a producer must assess whether or not there were any implied contracts that were established through conduct. Often, people think submission of an idea is sufficient to constitute implied-in-fact contracts; that’s not correct.

there are two clear requirements for establishing implied-in-fact contracts:

  1. the person who is sharing the idea must express the expectation to be compensated prior to sharing or if they share the idea.
  2. the recipient, e.g., the producer must know that there is this expectation of compensation and then voluntarily accepts the receipt of the idea.

So, in terms of limiting your potential liability in an implied-in-fact agreement, it’s possible if a producer ensures that every person who comes before them to submit any sort of idea signs an Idea Release Submission Form. [template credit: Early Sullivan Wright Gizer & McRae LLP]

 

Related:

About: Kailin Che is a corporate/commercial lawyer who represents clients in a broad range of industries including, technology, entertainment, manufacturing and real estate. She has advised clients on a variety of endeavors, including mergers and acquisitions, financing, reorganizations, corporate governance and regulatory compliance. Kailin began her legal career at a global law firm in Toronto and is licensed to practice in both Ontario and British Columbia.

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