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
