Advice for a band being propositioned by a label (not mine)

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I hope asking this kind of thing here is not too off-topic. I realize there was a similar thread about entertainment lawyers, but what I have to ask is more general. Also, this is really not my band, it's a friend's band, it's not some dumb cover for myself. Finally, all of this is taking place in Brazil. Thanks in advance for whatever answers I may get.

So, a friend's band is being propositioned by a mid-size label (who may or may not be affiliated with a major, I'm not sure), and I'm really concerned for him. I think that, for the type of music he makes, it might be a good idea, I don't know. But I'm asking for some basic pointers of things he should be careful about, and things he should reasonably expect from a label above bedroom status. Any basic warning signs, I don't know, I just don't want him to be caught in any kind of legal trap that will fuck with his life and his band, and I'd like him to get the best deal possible, if a good deal is available at all.

I already had him read The Problem with Music, btw.

Thanks again for your time.

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