ADVERTISER AND ADVERTISING AGENCY CONTRACT
Contract for advertising services made on _______________________(Month & Day), _______ (Year) between ________________________________________ Advertiser (Include Address) referred to as client, and ___________________________________ advertising agency __________ a corporation existing under the laws of the state of _____________________ and located in ____________________________________
___________________________________________________ (Address) to as agency.
SECTION ONE
APPOINTMENT OF AGENCY
Client hires agency, and agency agrees to serve as ______________________________ (the exclusive advertising agency of client or client‘s advertising agency in connection
with the sale of _____________________________ client’s product or service as
provided in this contract).
SECTION TWO
AGENCY INDEPENDENT CONTRACTOR
Agency shall act at all times during the term of this contract as independent contractor.
Nothing contained in this contract shall be construed to create the relation of principal
and agent or employer and employee, between client and agency.
SECTION THREE
PARTIES NOT TO DEAL WITH COMPETITORS
During the term of this contract, agency shall not serve as advertising agency in connection with any product directly competitive with the product or products that agency is advertising for client, without first obtaining client‘s written consent, nor shall client engage any other advertising agency to advertise ____________________ client’s (Product or Service) without first obtaining agency’s written consent.
SECTION FOUR
FEES AND SERVICES
(a) Agency market research, consumer investigations and trade investigations made for the purpose of assisting agency in planning advertising for client shall be made at agency’s expense. Such investigations and research as may be made pursuant to this agreement to secure information for client‘s own use shall be paid for by client, at cost to agency plus a __________ percent service charge.
(b) Agency shall receive a commission of __________ percent of the published rates of owners of media on all space in media purchased by agency for client, except that agency’s commission on outdoor advertising space shall be __________ percent of such purchase price. Agency shall deduct this commission from the published rate for any such space, and shall pay the net sum after this deduction to the owner of the medium in which the space was purchased.
(c) Non-commissionable items purchased by agency on client’s authorization, such as finished art, comprehensive layouts, type composition, talent musical works radio photostats, engravings, printing type setting, preparation of mechanical and television programs, literary, dramatic, and, records and exhibits, shall be billed to client at agency’s cost plus a __________ percent service charge.
(d) Should client desire agency to perform special services involving no commissions to agency from owners of media, such as direct mail advertising, speech writing and publicity and public relations work, agency and client shall, before such services are performed, mutually agree in writing on agency‘s compensation therefor on a straight-time basis.
SECTION FIVE
BILLING AND PAYMENT
Bills for services rendered pursuant to Section Four (b) shall be mailed to client on the ___________________ day of the month in which any such services are performed, and shall be due and payable on _____________________ (Due Date)
If client shall pay any bill for space in media on or before the due date, so as to enable agency to obtain any cash discount offered by owners of such media, agency shall credit client with the full amount of this discount.
SECTION SIX
CLIENT APPROVAL OF WORK AND EXPENDITURES
Agency shall prepare and submit for client’s approval advertising campaign plans, together with estimates of their cost.
All scripts, advertising copy and layouts, story boards and other materials prepared by agency pursuant to an advertising campaign plan that has been approved by client, shall be submitted to client‘s attorney for the attorney’s approval. Client‘s attorney has the right, in the attorney’s discretion, to withhold approval of any advertising matters submitted by agency that, in the attorney‘s opinion, may violate any regulation or ruling of the Federal Trade Commission.
Agency shall not, without client’s written prior approval, incur any expenses or enter into any obligations for which client may be held morally or legally responsible, except in emergency situations where such action is, in agency’s opinion, necessary to safeguard client’s interests.
SECTION SEVEN
AGENCY NOT RESPONSIBLE FOR DEFAULTS OF OTHERS
Agency shall not be liable to client by reason of the defaults of suppliers of materials and services, owners of media or other persons not the agents or employees of agency.
SECTION EIGHT
TERM OF CONTRACT; TERMINATION
The term of this contract shall begin on this day of _____________________ (Month & Day), __________ (Year), and shall continue __________________________ for _____________________ months thereafter until ________________________ (Date), or until terminated by ___________________ days written notice given by either party to this contract.
SECTION NINE
RIGHTS ON TERMINATION
All services performed and materials prepared by agency during the _____________ days prior to termination of this contract shall be billed to client as provided in Sections Four and Five, except that final bills shall be rendered by agency within ___________ days after termination, and shall be due and payable by client __________________ days after the date thereof.
Agency shall deliver to client all papers and other materials related to the work performed under this agreement on termination thereof __________ (except that agency reserves the right to retain any creative materials solely developed by agency that are not related in their entirety to the work performed by agency under this agreement).
Client shall assume liability for any contracts made by the agency that cannot be canceled in accordance with the terms of this contract on client’s behalf prior to termination.
Except as specifically set forth in this section, all the rights and liabilities of the parties arising out of this contract shall cease on the date of termination of this contract.
In witness whereof, the parties have executed this agreement at ___________________ (Designate Place of Execution) the day and year first above written.
______________________________ __________________
Signature of Client Date
______________________________ __________________
Signature of Client Date
______________________________ __________________
Signature of Agency Representative Date
_____________________________ __________________
Signature of Agency Representative Date
