So I have been questioning this matter since the first time I read Chinese novels revolving around entertainment industry. How could it be possible that the stars are the one that have to pay the penalty of the termination contract when the one that truly terminated it was the company that hired them? Like its a lil bit not logic to me. As example A is a star and B is the brand company, when A is in scandal and company B decided to terminate their contract wasn’t the party that supposedly pay is the company B? As B one sidedly broke the contract.... Thus I hope someone can explain to me how is the entertainment industry in china works TT.TT
I think it's because there are contractual clauses that state that if the star doesn't respect X engagement of the contract, the company can terminate the contract one-sidededly and the actor has to pay a penalty. And the star's reputation going rock bottom could be a disrespect of the engagement to keep up a good image and company image or something along those lines. Maybe they have a morality obligation, so if they keep a mistress and it gets out, they've misbehaved.
Oh... I think it's depends on what was rewritten in the contract. And when it comes to entertainment, it's actually theyre reputation that they have been selling, not just they're face and talent. So when it comes to signing contract it's given that the person should retain having good reputation. I think their love life is also included there, in some cases. So even if the one who terminated the contract is the company, they have the right since it was the person who first violated the terms of the contract. But still depends on the terms and conditions written in the contract
The artist has created a scandal making all the time and money spent on the artist wasted. That artist has created the reason for their contract to be terminated meaning they have to pay everything invested in them.