What does this contract clause mean in simple terms?

Question from Dre Dre, What does this contract clause mean in simple terms?

Answer from AI:

This clause is about the rights and obligations of the co-producers involved in an agreement, and how these rights and obligations can be transferred to others.

Binding Agreement

The first part of the clause states that the agreement is binding on the co-producers and their successors and permitted assigns. This means that:

• The agreement applies not only to the co-producers who originally signed it, but also to anyone who might take over their responsibilities in the future (their “successors”).
• The agreement also applies to anyone to whom the co-producers might transfer their rights under the agreement (their “permitted assigns”).

Assignment of Rights

The second part of the clause states that neither co-producer can transfer (“assign”) their rights under the agreement without the other co-producer’s written consent. This consent cannot be unreasonably withheld, meaning that if one co-producer wants to transfer their rights and the request is reasonable, the other co-producer should agree.

Pre-Production Assignment

The third part of the clause states that one co-producer has agreed to the other co-producer transferring their rights to a corporation that will be formed before production begins. This means that one co-producer has already given their consent for this specific transfer of rights.

Jurisdiction

The final part of the clause states that the agreement falls under the jurisdiction of Canada. This means that any disputes about the agreement will be settled according to Canadian law, and likely in Canadian courts.

Please note: This is a general explanation and may not cover all aspects of the clause. Legal language can be complex and it’s important to consult with a legal professional for personalized advice. For more information about contract law in Canada, you can visit the Department of Justice website.