Expert: Doug Ingram - 5/28/2005

Question
Can I legally enter into a contract in which I agree to lend someone a fixed amount of money where they agree to repay me in the form of a certain percentage of their future income.  Can I give someone a percentage of my income (suppose we are talking royalties from a book I am writing or something else involved in creative arts) for a specified period of time in exchange for a sum of money.  Are there any key words that would assist my research on this subject.

Thank you.

Sherry  

Answer
I can't think of any reason why not.  However, this is a question more suitable for an attorney.

If you trust the other person, you can draw up a mutually agreeable contract and have it notarized.  

Key words would be:
contract
profit sharing
partnership
etc.

Be sure and protect yourself.  Never give away too much and make sure the contract has a final maturity unless there's a good reason for a longer term agreement.