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Contract Between Advertising Agency and Client

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Advertising Services Contract

This Advertising Services Contract is made , 20 between

(Name of Client)

organized and existing under the laws of the state of , with

(street address, city, state, zip code)

its principal office located at, referred to herein as Client, and

(Name of Advertising Agency)

organized and existing under the laws of the state of , with

(street address, city, state, zip code)

its principal office located at, 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 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 Paragraph 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 the day of the following month. 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.

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.

VIII. Term of Contract; Termination. The term of this Contract shall begin on , and shall continue months until , or until terminated by days' written notice given by either party to this Contract.

IX. Rights on Termination.

A. 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 IV and V, 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 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 .

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)

By:

(Signature of Officer)

(Printed or Types Name)

(Office in Corporation)

(Name of Client)

By:

(Signature of Officer)

(Printed or Types Name)

(Office in Corporation)

Enter text✕

What this Contract Covers

The Contract Between Advertising Agency and Client is a written agreement that defines the scope of marketing and creative services, deliverables, timelines, payment terms, intellectual property allocation, and performance obligations between an agency and its client. It allocates responsibilities for campaign approvals, media buys, reporting, and confidentiality; states fees, expenses, invoicing cadence, and change-order procedures; and includes termination, indemnity, and dispute-resolution provisions. Attachments commonly include Statements of Work, schedules, and attribution rules to reduce misunderstandings and support enforcement if disagreements arise.

Why a Clear Agency-Client Contract Matters

A clear Contract Between Advertising Agency and Client allocates rights and risks, documents deliverables and timelines, and makes payment terms enforceable under commercial law.

Why a Clear Agency-Client Contract Matters

Who Typically Uses This Agreement

Who uses this contract and when: agencies, marketing teams, and clients negotiating services, retainers, or one-off campaigns.

  • Advertising agencies establishing detailed deliverables, pricing, approvals, and transfer of creative rights for client engagements.
  • Marketing departments hiring contractors for campaign support, creative work, or media buying on short-term projects.
  • Clients commissioning branding, advertising, or digital services who need clarity on scope, timing, and payment terms.

Independent contractors, procurement teams, and legal departments also rely on tailored versions and formal review before signature.

Core Sections to Include

Essential clauses in a Contract Between Advertising Agency and Client protect both parties and set expectations for performance, payment, IP, and dispute resolution.

Scope

Define the precise services, deliverables, formats, acceptance criteria, campaign schedules, and revision limits. Use measurable milestones and attach Statements of Work to avoid scope creep and billing disputes.

IP Rights

Allocate ownership of creative assets, transfers of copyright, licenses for third-party materials, and post-delivery usage rights. Specify who retains source files and usage limitations for campaigns.

Compensation

State fee structure, retainers, milestone payments, expense reimbursements, billing cycles, late-payment interest, and consequences for nonpayment including suspension of services and dispute escalation procedures.

Confidentiality

Define confidential information, permitted disclosures, non-disclosure obligations, duration of confidentiality, remedies for unauthorized use of trade secrets, and include injunctive relief where appropriate.

Termination

Specify notice periods, cure rights, termination for convenience or for cause, payment obligations on termination, and procedures for final deliverable handover and handling work-in-progress and IP.

Indemnity & Liability

Allocate responsibility for third-party claims, inaccuracies in advertising content, data breaches, and cap on damages; specify insurance requirements and indemnity scope for both parties, including examples of covered claims.

Step-by-Step: From Draft to Signed Contract

Follow these steps to prepare, review, and execute the Contract Between Advertising Agency and Client efficiently and defensibly.

  • 01
    Draft Terms: Outline scope, deliverables, fees, and IP ownership clearly.
  • 02
    Attach SOW: Add schedules and milestones as enforceable exhibits.
  • 03
    Review Legal: Have counsel review liability, indemnity, and termination clauses.
  • 04
    Execute: Sign in authorized form and retain executed copies for records.

Configuring an Online Approval and Signing Workflow

Set up a digital workflow to centralize reviews, approvals, and eSigning while keeping version control and audit trails intact.

Field Configuration
Upload Contract Store master PDF or DOCX in cloud
Assign Reviewers Set approvers and routing order
Set Authentication Use email, SMS, or KBA as needed
Enable Audit Trail Capture timestamps, IP, and actions

Execution Flow for Electronic Signing

A simplified signing flow reduces friction from upload to completed record and signed-copy delivery.

  • Upload Document: Sender uploads final contract file.
  • Place Fields: Add signature, initials, and date fields.
  • Send to Signers: Deliver via email link or shared URL.
  • Complete & Archive: Signed copies and audit trail saved automatically.

Delivery, Authentication, and Storage Considerations

Choose delivery channels, storage, and authentication for electronic execution and compliance with ESIGN, UETA, and industry rules.

  • Integrations: Salesforce, NetSuite, Google Workspace
  • File Formats: PDF, DOCX, HTML, Excel
  • Authentication: Email, SMS, or advanced options

Security and Compliance Checklist

Encryption: TLS 1.2/1.3 in transit; AES-256 at rest.
Authentication: Email, SMS, or multi-factor options.
Audit Trail: Timestamps, IP addresses, and action log.
HIPAA BAA: Available; required for PHI workflows.
Certifications: SOC 2 Type II, ISO 27001, PCI DSS.
Data Residency: Cloud storage with configurable retention policies.

Common Risks and Contractual Consequences

Incorrect Parties: May render agreement unenforceable.
Vague Scope: Leads to scope disputes and extra costs.
Missing Signatures: Invalid under ESIGN without intent evidence.
Incorrect Payment Terms: Triggers late fees and collection actions.
Noncompliant HIPAA: Risk of penalties and breach notices.
Tax Reporting Errors: Incorrect payee information triggers withholding.

Frequent Preparation Mistakes to Avoid

  • Unclear deliverables and acceptance criteria often cause repeated revisions, schedule slippage, and budget overruns; include measurable milestones and limits on revisions to control scope and costs.
  • Failure to document IP ownership leads to disputes over reuse and licensing; explicitly assign copyrights or grant specific licenses for campaign assets.
  • Not defining payment triggers and invoice procedures increases late payments and collection costs; state invoicing cadence, acceptable payment methods, and remedies for nonpayment.
  • Ignoring confidentiality or PHI handling in campaigns risks regulatory fines and client liability; include confidentiality clauses and HIPAA safeguards when applicable.

Key Deadlines and Timing Considerations

Important deadlines for contract lifecycle, tax reporting, and recordkeeping that affect agency-client engagements.

Effective Date and Start:

Obligations begin on the effective date entered.

Payment Terms and Invoice Due:

Follow billing cycle and due dates; late fees apply.

Record Retention Requirements:

Retain executed contracts according to retention policies and legal requirements.

Tax Reporting Deadlines:

Provide contractor forms and 1099s as required by IRS deadlines.

Contract Renewal Notice:

Specify notice period for renewals or termination before auto-renewal.

Electronic vs. Wet-Ink Signatures: Practical Differences

Compare electronic and traditional handwritten signatures for enforceability, notarization needs, auditability, and record storage for agency-client contracts.

Criteria Electronic Wet ink
Legal validity
Notarization required sometimes
Audit trail limited
Remote signing

eSignature Vendor Pricing Snapshot

Pricing and feature overview for common eSignature vendors relevant to agency-client contracts, with signNow listed first for direct comparison without endorsement.

signNow DocuSign Adobe Sign PandaDoc HelloSign
Starting Price $8/user/mo $15/user/mo $14/user/mo $19/user/mo $15/user/mo
Free Trial 7-day trial Varies Varies Varies Varies
Bulk Send Yes Yes Yes Yes Varies
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes Yes Yes No No

Practical Examples from Real Users

Real-world examples show how standardized contracts and online signing reduce delays, clarify responsibilities, and speed campaign launches.

Optica Ventures — Brian Fitzgibbons

Optica uses standard contracts to set deliverables and approval windows that reduce back-and-forth during campaign execution.

  • Template SOWs shortened approval cycles.
  • Their experience shows that a simple, well-structured agreement combined with online signing improves turnaround. 'The interface is simple and easy-to-use for our team; more importantly, it is just as easy for our customers.' Signed copies ensured compliance and faster delivery of campaign materials.

Martin Properties — Tim Martin

Martin Properties used a standard agency contract to centralize approvals and track creative revisions across agents and third-party vendors.

  • Mobile signing enabled remote execution.
  • He noted that processing documents online supported compliance and reduced delays: 'I can process and execute all of these documents online with 100% compliance and built-in security.' The change reduced turnaround and simplified recordkeeping.

Frequently Asked Questions

Answers to common questions about signing, enforceability, notarization, identity verification, amendments, and secure storage for agency-client contracts.


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