An Advertising Contract is a legal document that is created when a company or an organization hires an external agency to advertise their products or services on their behalf. In this contract, there are mostly two parties involved, the first being the company who wants the advertising services to be rendered and the second being the company or advertising agency which is being hired to run the ads. An Advertising Contract is a legal document which outlines the terms and conditions of the deal, the specifications as mentioned by the parent organization along with other details such as, when the advertisement needs to be created, how it should be publicized and how long it should be published for.
The first party in the contract or on the legal document is known as the Company and the second party, the advertising agency is known as the Advertiser.
When Do You Need an Advertising Contract?
The most common application of such a contract can be found when a company or an organization needs their products or services to be advertised and thus hires an external or a third-party agency to do the same.
The contract is a legal proof and clearly that outlines the individual responsibilities of both the Company and the Advertiser in the context of the products or services to be advertised and also contains other finer details of the deal.
Inclusions In Advertising Contract
- Parties Involved: In an Advertising Contract there are usually two parties involved; the first being the Company who wants their products or services to be advertised and the second being the Advertiser who has been chosen to be the company’s advertising partner.
- Effective Dates: This section of the contract outlines the important details of the advertising deal such as when the advertisement needs to be created, by when it needs to be released and publicized and until when will the advertisement run.
- Where does it Apply: The Advertising Contract is legally binding within the boundaries of the state, city or the county it has been originally created at.
How To Draft An Advertising Contract?
Follow the below-mentioned steps in order to draw an Advertising Contract.
- Organize a meeting between the first party, that is the company who wants to advertise their products and services, and the second party, which is the chosen advertising agency. Discuss upon the specifications of the advertisement, the charges of the same and other important details.
- Once both the parties have agreed to the terms and conditions, reach out to a legal team and ask them to draft an Advertising Contract on your organization’s behalf.
- Cross verify and check the details with both the parties and file the contract in the local court of law as advised by your legal team.
Benefits Of an Advertising Contract
The most significant benefits of having an Advertising Contract are as follows.
Pros of Advertising Contract
- The contract clearly outlines the individual responsibilities of both the company as well as the advertiser. It outlines the exact specifications of the advertisement being created, its purpose and other important details, making sure that both parties are well aware at all times.
- This document acts as a legal proof and thus can be produced in court if there is a need in the future.
Cons of not having an Advertising Contract
- In the absence of an Advertising Contract, neither of the parties have a legal proof of a transaction taking place between two entities and thus if the matter is ever brought to court, both parties stand to lose.
[Also Read: Web Advertising Agreement]
Key Terms & Clauses In Advertising Contract
- Notices: Both the stakeholders in the agreement need to issue certain notices to each other and this section outlines the details of the same.
- Disclaimers: Certain disclaimers need to be provided by both the Company as well as the Advertiser, the details of which are mentioned here.
- Remedies: In the case of a lapse in payment or default in terms and conditions, certain remedies need to be followed, the details of which are shared here.
- Obligations: Both the Advertiser and the company have certain obligations to each other which need to be fulfilled; the details of the same are mentioned here.
Sample for Advertising Contract
Download a sample Advertising Contract by clicking here.
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This agreement is made between the Company and the Advertising Agency on the effective date of 09th November, 2011. Company represented by Ms. Kaisa Harms Address: 33501 S Dixie Hwy, Florida City, FL 33034 Contact number: (305) 242-4447 Advertising Agency represented by Mr. Jason Newstead Address: 2100 88Th St, North Bergen, NJ 07047 Contact number: (201) 758-2810 Duration of contract: 12 months Terms and Conditions:
- Under the specified Advertising Contract, the Company shall purchase the advertising package at the listed rate and for the specified duration, which is attached for reference herein and incorporated as a part of this agreement.
- Except as otherwise expressed in the Advertising Contract, positioning of the advertisements on the said print and electronic medium is at the sole discretion of the Company.
- The Company at its sole discretion may reject any advertisements.
- The Advertising Agency agrees to defend and will indemnify the Company from any kind of damages, expenses, or costs of any nature incurred, including but not limited to attorney fees.
- All forms of advertising representing the creative effort of the Company and/or the utilization of illustrations, composition, labor, or material furnished is and will remain the property of the Company and this also includes all rights of copyright therein.
This Advertising Contract will only be effective from the date it is signed by the Company as well as the Advertising Agency. SIGNED FOR AND ON BEHALF OF COMPANY BY: ……………………………………………………………. Name: SIGNED FOR AND ON BEHALF OF ADVERTISING AGENCY BY: ……………………………………………………………. Name: