This section is from the book "The Law Of Contracts", by William Herbert Page. Also available from Amazon: Commercial Contracts: A Practical Guide to Deals, Contracts, Agreements and Promises.
4. In the event the films named herein or any part thereof are destroyed or damaged in any way while in the possession of the exhibitor, the exhibitor shall furnish the X.Y. Company a sworn affidavit stating how said film was destroyed or damaged, and further pay to the X. Y. Company in addition to any other provision for or right to damage 15 cents for each lineal foot of film so damaged or destroyed.
5. No scene, title or sub-title of film loaned to the exhibitor as aforesaid shall be cut or altered without the written consent of the X. Y. Company.
6. The films loaned to the exhibitor as aforesaid shall not be projected at a greater rate of speed than 1M feet in 15 minutes.
7. If the exhibitor or any one claiming under or against the exhibitor shall withhold from the X. Y. Company any film after the time when the same is due to be returned to the X. Y. Company, as herein provided, the exhibitor shall pay to the X. Y. Company as liquidated damages for such withholding, in addition to any other damages liquidated or otherwise for which provision is made herein, or to which the X. Y. Company may be otherwise entitled, the sum of $--------- for each roll of film so withheld, plus a sum of money equal to the license fee provided herein for each day that such film shall be so withheld.
8. Unless the title of a subject is specifically mentioned, it is understood that the X. Y. Company will loan to the exhibitor a positive print of a subject of the X. Y. Company's own selection.
9. No loan of film shall be made by the X. Y. Company hereunder until the exhibitor shall have paid to the X. Y. Company all moneys then due under the terms of this license or under the terms of any other agreement between the parties hereto. In case any such moneys be so unpaid to the X. Y. Company, the X. Y. Company may at its option ship any film or films so to be loaned C. O. D. for the license fee or fees then owed hereunder or moneys otherwise due to the X. Y. Company, and in that event the exhibitor agrees to pay the C. O. D. and all other incidental charges. It is expressly understood that paragraph 3 above applies to and governs all films so sent C. O. D.
10. The failure of the X. Y. Company to insist upon the striet performance of any provisions hereunder shall not be construed as a waiver for the future of any such' provisions, but same shall remain and continue in full force and effect.
11. The X. Y. Company shall not be liable for any lose or damage resulting to the exhibitor or any other person by reason of failure or delay from any cause whatsoever in delivering the films aforesaid or any of them or such advertising matter or any part thereof at the times and places specified above for the same respectively, except that where such failure or delay has been caused by the error or the negligence of the X. Y. Company, its agents or servants, the exhibitor shall be entitled to a refund of so much of the license fee as has been paid as aforesaid for the exhibition date or dates of a film or films, the delivery of which may have so failed or been delayed, and in no event shall the X. Y. Company be liable for more than the license fee paid for any date for which the film may not have been delivered as aforesaid, it being expressly agreed that the same shall be taken as liquidated damages in the premises.
12. The X. Y. Company shall have the right to cancel and terminate this license and all rights of the exhibitor hereunder upon default by the exhibitor in the payment of any moneys due hereunder or otherwise by the exhibitor to the X. Y. Company or in case the exhibitor fails to return as aforesaid any films loaned to or in the hands of the exhibitor under this license or any contract between the parties hereto within the time appointed herein or therein for the return of same, or in case of any other default by the exhibitor under this license or any contract between the parties hereto.
13. If the license granted hereunder covers motion picture subjects released weekly at regular intervals, the same shall be subject to cancellation at the option of either party by four weeks' written notice given to the other party. If the license granted hereunder covers a series of motion picture subjects released at irregular intervals, the same shall be subject to cancellation at the option of either party by notice in writing given to the other, and such cancellation shall be effective from and after the expiration of the license date next succeeding the date of the giving of such notice.
14. So long as Section 905 of the Revenue Act of 1918 shall remain in force, the exhibitor shall pay the X. Y. Company, in addition to all other charges, a sum equal to 5% of the gross license fees payable by the exhibitor for the license granted to said exhibitor to exhibit said motion picture subjects, such 9% to be added to the bill for such license fees and to become due and payable at the time of the payment of such license fees. The payment of such tax by the exhibitor is of the essence hereof and failure to do so will be sufficient cause for its immediate cancellation by the X. Y. Company.
15. The exhibitor shall return to the X. Y. Company on demand all adver* tising matter supplied as aforesaid.
16. Salesmen are not authorized to make any modification of the printed terms hereof. No agreement other than as expressed herein has been made between the parties hereto.
17. The license granted hereunder is personal to the exhibitor and shall not be assigned without the X. Y. Company's written consent.
The X. Y. Company does not furnish advertising matter without charge.
For theatrical contracts, see Sec. 3929 to 3931.