Not all contracts are the same. Things to look out for are future royalty rights past the recoupment amount, transfer rights (rights auction/library sales/catalogue bundling) and liability in breach of recoupment as well as terms (lending rates, gross vs net points, cost structures and definitions.) Contracts aren't a bad thing, but some of them are not necessarily a good thing either. Some of them are structured in ways that make cost recuperating and net profit impossible by design. Best thing would be to read it thoroughly and find a way to get a lawyer who has experience in these types of transactions involved. There is no reason to assume foul play, but it is better to be safe then sorry.
Yeah, I wouldn't sign anything without getting an experienced industry lawyer to go through the contract line by line. A mate of mine got screwed by one of the big three labels, and it ended up making his time in America very complicated.
