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Originally Posted by nomesque
I did specifically say manuscripts that were rejected by publishers 
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I think many contracts would not let them publish it elsewhere if it was rejected. At least if they have multi-book contracts. If you sign a contract to publish X number of books with a publisher, I doubt you can take even a manuscript they rejected elsewhere until you've published X number of books with them and satisfied the contract.
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Just what sort of contracts are most authors under? I was assuming that most would have a 2-3 book deal, not much more...?
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That's going to vary greatly. Successful authors will have longer contracts as publishers give them better deals to lock them in long-term to keep them from going to a competitor.
And up and comer will have a shorter one usually, as publishers want them to prove themselves first before committing long term.