Opinion ID: 394191
Heading Depth: 2
Heading Rank: 1

Heading: The Sale-Purchase Agreement

Text: 3 An understanding of the contractual relationship entered into between Vitagraph and Levy is necessary to understand Vitagraph's asserted claim. 3 In August of 1975 Vitagraph and Levy entered into a written agreement for the sale of the film to Levy. Part of the consideration received was a non-recourse promissory note to be paid from net income of the film under a percentage points profit allocation arrangement. Vitagraph retained a security interest in the film to secure payment of the note, and in the event of default Vitagraph's sole remedy was to look to the film pledged as security. Under the terms of the agreement, title to the film would also revest in Vitagraph in eight years in the event the note was not paid. Levy obtained all distribution rights to the film, and an assignment of all rights, title, and interest, including copyright, was executed on February 11, 1976.