An advertising agreement is a document between an advertising agency and a company or a person who wishes to advertise services. The agreement normally sets for the rights and responsibilities of the parties. It specifies what services are mutually agreed and what the agency will deliver to the company. The agreements normally provide the methods by which the agency will enter into a third-party contract for the provision of services. Such agreements contain both standard clauses as well as opportunities for customization, including relevant milestones and other important provisions.
Types of Advertising Agreements
While booking the services of an agency, it is essential to have the best contract which can take care of legal rights and responsibilities as well as ensure the best possible client-agency relationship.
Here are some types of advertising contracts you need to know.
Advertising agency contract: this contract includes all terms and conditions for the services, including details on the payment, quality of services, turnaround time, and nature of work.
Media advertising contract: this document is used for the media, yearbook, and exclusive auctions.
Display advertising contract: this document describes the rules of the business, including the payment and penalties, details of work for magazines, and display boards.
Outdoor advertising contract: this document details the terms concerning the location of the advertisement.
Magazine advertising contract: this document states simple clauses and terms between parties involved in magazine advertising.
Components of Advertising Agreements
Every contract may have its unique provisions, but there are general terms that should exist in any contract. The following are the essential components of such agreements.
- Legal names and addresses: both parties should have their legal names and addresses cited and may include nicknames such as “Client” and “Agency”.
- Duration of the contract: here the parties state the start and end date of the contract. These parties normally state that the “Client” should make the payment before the final release of the document.
- Project scope: this is the lengthiest part of the contract, detailing the key points, the goal, services to be provided, the methods of delivery and the requirements to the client.
- Payment schedule and budget: this section details the amount that the Client needs to pay to the agency and the method of payment. You can also include information about payment dues, payment period and late payment fees.
- Termination: you might want to state the notice period, a method of notice, outstanding works, and refunds.
- Breach of contract: failure to comply with the contract terms is a breach of contract. You can specify the possible scenarios stating whether a refund is available or not.
- Copyrights: this part specifies intellectual property rights. It is a good idea to state in advance who owns what and every element of the work.
While there are lots of Advertising Agreements templates on the web, it’s better to have an attorney review the contract. For the templates of advertising contracts, visit this page.
