If a manufacturer wants better rights control, an option/sale contract may be more appropriate. This agreement is longer and all terms of purchase must be negotiated now, but it allows the manufacturer to know what is necessary to have the rights transferred when the manufacturer exercises the option and acquires the rights. However, a purchase agreement may be more advantageous for an owner if the property gains heat and generates interest after being purchased. In the absence of a pre-negotiated purchase price related to the property, as in the case of an option contract, an owner is free, as part of a purchase agreement, to negotiate a purchase price directly with the buyer and take advantage of the upward trend, including possible bidding wars. But the opposite also applies. For example, a screenwriter could enter into a purchase agreement for a well-written screenplay with commercial potential, but a film with a similar premise will be released shortly after and become a cash register bomb. Film and television trends are hesitant, the script can suddenly become dead in the water, without interested buyers re-breeding because of the risk of the same failure. The owner would be missing all the revenue he would otherwise have received if he had entered into an option contract. A purchase agreement usually contains a clause that protects the manufacturer from a situation in which the contract expires while the manufacturer is in the middle of negotiations with a potential buyer, which results in an agreement on the property with the owner, but does not benefit the builder because of the expiry of the agreement. Such a clause would automatically extend the duration of a period during which the builder is in valid negotiation with a potential buyer. The owner may insist on a cap for this extended period, so that it is not overly extended. During the duration of the purchase agreement, the manufacturer has the right — and is generally contractually binding — to leave the property to potential buyers or financiers in order to pass it through the development and production pipeline.
If the manufacturer is successful and a buyer or financier shows an interest in the property, a sales contract allows the owner and producer to negotiate and enter into separate agreements on the project with the interested party. The owner negotiates the sale of rights to the property while the manufacturer negotiates its attachment to the project. A manufacturer should also pay attention to the scenario in which the manufacturer does the work of the legs to provide the IP address to a buyer, but the owner does not then enter into a contract with the same buyer until after the expiry of the sales contract. A language may be added prohibiting the owner, for a specified period after the expiry of the agreement, from entering into a contract with a buyer to whom the manufacturer has previously submitted the period of investigation, unless the manufacturer is attached. Such a clause is often accepted, namely that an agreement can be reached without the manufacturer`s commitment if the property has been substantially modified since its inception. If, at the expiry of the agreement, substantial changes have been made to the investigation period or if influential talent is attached to the project, the project`s market capacity may improve and justify why an agreement was not reached until after the manufacturer`s departure. «Purchase agreements» (sometimes referred to as «manufacturer input agreements») are increasingly being used as an alternative to option agreements.