Advertising Services Contract
This Advertising Services Contract is made , 20 between
(date)
, a corporation
(Name of Client)
organized and existing under the laws of the state of , with
(name of state)
its principal office located at
,
(street address, city, state, zip code)
referred to herein as Client , and , a
(Name of Advertising Agency)
corporation organized and existing under the laws of the state of
,
( name of state)
with its principal office located at
,
(street address, city, state, zip code)
referred to herein as Agency .
I. Appointment of Agency. Client hereby appoints Agency, and Agency hereby agrees to
serve as Client's Advertising Agency in connection with the sale of
(describe Client's product or service)
as provided in this Contract.
II. 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 of
(describe Client's product or service)
without first obtaining Agency's written consent.
III. Independent Contractor. Agency shall act at all times during the term of this Contract
as an 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.
IV. 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
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Agreement to secure information for Client's own use shall be paid for by Client, at cost
to Agency plus a % service charge.
B. Agency shall receive a commission of % 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 % 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, photostats, engravings,
typesetting, preparation of mechanicals, printing, radio and television programs, talent,
literary, dramatic, and musical works, records and exhibits, shall be billed to Client at
Agency's cost plus a % 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 on a
straight-time basis.
V. Billing and Payment. Bills for services rendered pursuant to Section IV Parag raph B,
shall be mailed to Client on the day of the month in which any such services are
(number)
performed, and shall be due and payable on the day of the following month. If Client
(number)
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.
VI. 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.
VII. 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.
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VIII.
Term of Contract; Termination. The term of this Contract shall begin on ,
(date)
and shall continue months until , or until terminated by days'
(number) (date) (number)
written notice given by either party to this Contract .
IX. Rights on Termination.
A. All services performed and materials prepared by Agency during the
(number)
days prior to termination of this Contract shall be billed to Client as provided in Sections
IV and V, except that final bills shall be rendered by Agency within days
(number)
after termination, and shall be due and payable by Client days after the
(number)
date of termination.
B. On termination of this Contract, Agency shall deliver to Client all papers and
other materials related to the work performed under this agreement, 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 .
C. Client shall assume liability for any non-cancellable Contracts made by Agency in
accordance with the terms of this Contract on Client's behalf prior to termination.
D. 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.
X. Severability. The invalidity of any portion of this Agreement will not and shall not be
deemed to affect the validity of any other provision. If any provision of this Agreement is held to
be invalid, the parties agree that the remaining provisions shall be deemed to be in full force and
effect as if they had been executed by both parties subsequent to the expungement of the invalid
provision.
XI. No Waiver. The failure of either party to this Agreement to insist upon the performance
of any of the terms and conditions of this Agreement, or the waiver of any breach of any of the
terms and conditions of this Agreement, shall not be construed as subsequently waiving any such
terms and conditions, but the same shall continue and remain in full force and effect as if no such
forbearance or waiver had occurred.
XII. Governing Law. This Agreement shall be governed by, construed, and enforced in
accordance with the laws of the State of .
(name of state)
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XIII. Notices. Unless provided herein to the contrary, any notice provided for or concerning
this Agreement shall be in writing and shall be deemed sufficiently given when sent by certified
or registered mail if sent to the respective address of each party as set forth at the beginning of
this Agreement.
XIV. Attorney’s Fees. In the event that any lawsuit is filed in relation to this Agreement, the
unsuccessful party in the action shall pay to the successful party, in addition to all the sums that
either party may be called on to pay, a reasonable sum for the successful party's attorney fees.
XV. Mandatory Arbitration. Notwithstanding the foregoing, and anything herein to the
contrary, any dispute under this Agreement shall be required to be resolved by binding
arbitration of the parties hereto. If the parties cannot agree on an arbitrator, each party shall select
one arbitrator and both arbitrators shall then select a third. The third arbitrator so selected shall
arbitrate said dispute. The arbitration shall be governed by the rules of the American Arbitration
Association then in force and effect.
XVI. Entire Agreement. This Agreement shall constitute the entire agreement between the
parties and any prior understanding or representation of any kind preceding the date of this
Agreement shall not be binding upon either party except to the extent incorporated in this
Agreement.
XVII. Modification of Agreement. Any modification of this Agreement or additional
obligation assumed by either party in connection with this Agreement shall be binding only if
placed in writing and signed by each party or an authorized representative of each party.
XVIII. Assignment of Rights. The rights of each party under this Agreement are personal to that
party and may not be assigned or transferred to any other person, firm, corporation, or other
entity without the prior, express, and written consent of the other party.
XIX. Counterparts. This Agreement may be executed in any number of counterparts, each of
which shall be deemed to be an original, but all of which together shall constitute but one and the
same instrument.
XX. Compliance with Laws. In performing under this Agreement, all applicable
governmental laws, regulations, orders, and other rules of duly-constituted authority will be
followed and complied with in all respects by both parties.
WITNESS our signatures as of the day and date first above stated.
(Name of Agency) (Name of Client)
By: By:
(Signature of Officer) (Signature of Officer)
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(Printed or Types Name) (Printed or Types Name)
(Office in Corporation) (Office in Corporation)
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