A record company’s legal department is responsible for all the contracts that are made between the company and the artist. The label’s team of attorneys will draft the recording contracts and do the final negotiations with the artist’s manager or lawyer. Any legal actions, such as lawsuits between musicians and the label, go through this department.
Recording contracts are something that may be overlooked at the indie level, though this is not advisable. When dealing with a major label, however, there is no getting around the legal aspects of doing business together. You need the advice of a good attorney before entering into a contract.
For contract negotiations, an attorney generally charges a set fee rather than a percentage as a manager or agent would.