Once an artist selects the appropriate distribution entity, it is standard practice for the parties to enter into an agreement outlining the deal points. Record labels will only be interested in signing an artist who they think has the potential to make money.Send the Record Label a "Notice to Cure" letter. The Clash signed a deal with CBS to deliver 10 albums in a 10 year period. This is why Sandinista! Record label legal documents help businesses deal with all kinds of copyright issues and get adequate insurance with the best legal structure in the US. Harmonize your music career with a seasoned music lawyer. Over the past month, we have been going back and forth over the terms of the recording contract. A record label contract is a legally binding agreement between a recording artist or band and a record label company. Signing a record contract can be scary, confusing, exciting and joyful all at the same time.