A personal service contract is an agreement used in the entertainment industry to bind an artist to a company that manufactures, distributes or promotes the artist's works, performances or services. When an artist enters into a personal service agreement, they are often restricting their right to create work or perform outside of the company they have contracted with. Companies use personal service agreements as a means of guaranteeing that the artists who work with them, and who are generating a profit for them, will stay with those companies for the amount of time specified in the contract.
In addition to the basic issue of compensation, a personal service agreement may outline the details related to the issue of territory, which specifies in what regions or countries the artist can work. The type of media formats that will be used to record, reproduce and distribute the artist's creative works and performances can also be outlined in a personal service agreement.
Some important issues that are considered in a contract made between an artist and a company concern what type of credit the artist will receive for their work and the length of time they will be expected to render their services to the company. Options may be included in a personal service contract, and can give the company the right to extend the artist's length of service under certain conditions. The issue of exclusivity, which relates to whether the artist can work with other companies or on their own, represents another important issue outlined in a personal service agreement.