A sponsor agreement is a legal arrangement between two parties wherein one party undertakes to sponsor a specific pursuit of the second party in lieu of certain pre-decided terms and services by the second party. In other words the first party undertakes to fund the endeavors of the second party in a specific field be it sports, education, entertainment or any other area and the second party undertakes to perform certain services in lieu of the sponsorship for example a player is sponsored by a particular company and the player in return agrees to promote and endorse the brand in advertisement and various other media.
A sponsor agreement should be drafted with utmost care and should be impartial mentioning the complete detail on the terms of sponsorship, the amount and duration of sponsorship, the services to be performed, the rights of both the parties, clauses to avoid any conflict and remedy in case of dispute.
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