Establishing secure connection…Loading editor…Preparing document…

Legal DSP Agreement

This template is fully customizable. Edit the text, fill out the fields, and send it for signature. Give it a try!

LEGAL DSP AGREEMENT

This Legal DSP Agreement ("Agreement") is entered into as of Effective Date: by and between Client Name: , an entity organized as Corporation LLC Sole Proprietor Other, with principal place of business at ; and Service Provider Name: , an entity organized as Corporation LLC Sole Proprietor Other, with principal place of business at .

RECITALS

WHEREAS, Client desires to engage Service Provider to provide a demand-side platform and related digital advertising services as further described herein; and

WHEREAS, Service Provider represents that it has the technical capabilities, personnel, and licenses necessary to provide the Services under the terms of this Agreement; and

WHEREAS, the parties wish to set forth the terms and conditions under which Service Provider will deliver the Services and Client will compensate Service Provider.

NOW, THEREFORE, in consideration of the mutual covenants set forth below, the parties agree as follows:

1. DEFINITIONS

1.1 "Agreement" means this Legal DSP Agreement, including all Schedules and Attachments. "Confidential Information" means information disclosed by one party to the other that is marked confidential or would reasonably be understood to be confidential. "Services" means the DSP platform access, campaign management, reporting, and related services described in Schedule A (Services Description).

2. SERVICES

2.1 Service Description. Service Provider will provide the Services in accordance with the specifications set forth in Schedule A. Service Provider shall use commercially reasonable efforts to deliver Services in a professional and workmanlike manner consistent with industry standards.

3. TERM AND TERMINATION

3.1 Term. The initial term of this Agreement shall commence on the Effective Date and continue for a period of months, unless earlier terminated as provided herein. Thereafter this Agreement shall automatically renew for successive month periods unless either party provides written notice of non-renewal at least days prior to the end of the then-current term.

3.2 Termination for Cause. Either party may terminate this Agreement for material breach by the other party if the breaching party fails to cure such breach within days after receipt of written notice specifying the breach.

4. FEES AND PAYMENT

4.1 Fees. Client shall pay Service Provider the fees set forth in Schedule B. Unless otherwise specified, all fees are due within days of receipt of a correct invoice. Fees are exclusive of taxes, which Client will pay where applicable.

5. DATA SECURITY AND PRIVACY

5.1 Data Handling. Service Provider shall implement and maintain administrative, technical and physical safeguards appropriate to the risk to protect Personal Data against unauthorized access, use, alteration, disclosure or destruction. Service Provider will only process Personal Data in accordance with Client's documented instructions and this Agreement.

5.2 Breach Notification. Service Provider will notify Client without undue delay upon becoming aware of a security incident affecting Client Data, provide a description of the incident, and take commercially reasonable steps to mitigate harm.

6. INTELLECTUAL PROPERTY

6.1 Ownership. Client retains all right, title and interest in Client Data and any intellectual property provided to Service Provider. Service Provider retains all right, title and interest in the DSP platform, algorithms, tools and pre-existing materials provided to Client.

6.2 License. Service Provider grants Client a non-exclusive, non-transferable, revocable license during the Term to access and use the Services solely for Client's internal business purposes. Client grants Service Provider a limited license to use Client Data solely to perform the Services.

7. CONFIDENTIALITY

7.1 Confidentiality Obligation. Each party shall keep Confidential Information of the other party strictly confidential, use it only for the purposes of performing its obligations under this Agreement, and disclose it only to those employees and contractors with a need to know who are bound by confidentiality obligations no less restrictive than those herein.

7.2 Exceptions. Confidential Information shall not include information that: (a) is or becomes publicly known through no breach of this Agreement; (b) is rightfully received from a third party without restriction; or (c) is independently developed without use of the other party's Confidential Information.

8. REPRESENTATIONS AND WARRANTIES

8.1 Mutual Representations. Each party represents that it has the full right, power and authority to execute and deliver this Agreement and to perform its obligations hereunder.

8.2 Service Provider Warranty. Service Provider warrants that it will perform the Services in a professional manner consistent with industry standards. Client's exclusive remedy for breach of this warranty shall be re-performance of the defective Services or, if Service Provider cannot timely re-perform, a refund of the fees attributable to the defective Services.

9. INDEMNIFICATION

9.1 Provider Indemnity. Service Provider shall indemnify, defend and hold harmless Client from and against any third-party claim arising out of Service Provider's gross negligence, willful misconduct, or material breach of this Agreement, including claims alleging that the Services infringe a third party's intellectual property rights.

9.2 Procedure. The indemnified party shall promptly notify the indemnifying party in writing of any claim and permit the indemnifying party to control the defense and settlement thereof; provided that the indemnifying party may not settle any claim that admits fault or obligates the indemnified party without the indemnified party's prior written consent.

10. LIMITATION OF LIABILITY

10.1 Exclusion of Damages. Except for breaches of confidentiality, indemnification obligations, or liability arising from willful misconduct, neither party shall be liable to the other for indirect, incidental, consequential, special or punitive damages, including loss of profits.

10.2 Cap. The aggregate liability of each party for all claims arising out of or relating to this Agreement shall not exceed or the total fees paid by Client to Service Provider in the twelve (12) months preceding the claim, whichever is less.

11. COMPLIANCE WITH LAWS

Each party shall comply with all applicable laws and regulations in performing its obligations under this Agreement, including data protection and advertising law requirements. Service Provider will implement measures required to comply with applicable opt-out and consumer choice obligations related to tracking and targeting.

12. AUDIT RIGHTS

Client has the right, upon reasonable notice and during normal business hours, to audit Service Provider's compliance with the terms of this Agreement, provided that such audits are limited to once per calendar year unless a material breach is suspected. Audits shall be conducted in a manner that minimizes disruption to Service Provider's operations.

13. NOTICES

All notices under this Agreement shall be in writing and delivered to the addresses set forth below or to such other address as a party may designate by notice. Notices are effective upon receipt.

14. MISCELLANEOUS

14.1 Amendments. No amendment or modification of this Agreement shall be effective unless in writing and signed by authorized representatives of both parties.

14.2 Waiver. The failure of either party to enforce any right shall not constitute a waiver of that right.

14.3 Counterparts. This Agreement may be executed in counterparts, each of which shall be deemed an original and all of which together shall constitute one instrument.

14.4 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of , without regard to conflict of laws principles.

14.5 Entire Agreement. This Agreement, including any Schedules, constitutes the entire agreement between the parties with respect to the subject matter hereof and supersedes all prior and contemporaneous agreements and understandings, whether written or oral.

14.6 Severability. If any provision of this Agreement is held to be invalid or unenforceable, the remaining provisions shall remain in full force and effect.

Client Printed Name:

By:

Date:

Service Provider Printed Name:

By:

Date:

Enter text✕

What the Legal DSP Agreement Is and When It Matters

A Legal DSP Agreement is a contract between a data controller and a data service provider (DSP) that defines the scope of services, permitted data uses, security obligations, breach response, and allocation of liability. It clarifies roles (controller vs processor), sets technical and organizational safeguards, and typically includes audit and subcontractor rules. The agreement also addresses cross-border transfers, data subject request handling, and retention. Well-drafted DSP contracts reduce compliance gaps and provide an enforceable framework for operational responsibilities and incident management.

Why a Clear Legal DSP Agreement Matters for Risk and Compliance

A Legal DSP Agreement documents party responsibilities, reduces regulatory exposure, and creates contractual remedies for breaches. It supports enforceability for electronic execution under ESIGN (15 U.S.C. ch. 96) and state UETA laws, and it clarifies audit, data retention, and breach-notification duties to limit liability and regulatory risk.

Why a Clear Legal DSP Agreement Matters for Risk and Compliance

Who Typically Drafts, Signs, and Manages DSP Agreements

The Legal DSP Agreement involves legal, privacy, procurement, and IT stakeholders; signers and administrators will differ by organization size and industry.

  • Data Controllers and Business Owners — Define business requirements, approve permitted uses of personal data, and own regulatory risk allocations.
  • Information Security and IT Teams — Specify technical safeguards, encryption, access controls, and incident response responsibilities.
  • Legal and Privacy Counsel — Draft contractual clauses, review indemnities, and confirm compliance with sector rules such as HIPAA or state privacy laws.

Implementation and ongoing monitoring are normally handled by procurement or vendor management with periodic audits and renewals coordinated by legal or privacy teams.

Core Clauses Every Professional Legal DSP Agreement Should Include

A comprehensive DSP Agreement organizes legal obligations into discrete, enforceable sections so each party understands operational and regulatory responsibilities.

Scope of Services

Precise description of DSP tasks, data categories processed, and permitted processing activities to limit unexpected uses and downstream sharing.

Security Obligations

Technical and organizational measures required (encryption, access controls, logging, vulnerability management) with testing and audit schedules.

Subprocessors

Rules for subcontractor approval, notification timing, flow-down obligations, and a right to audit or object to critical subprocessors.

Breach Response

Notification timelines, required content, investigation responsibilities, remediation steps, and cooperation with regulators and affected parties.

Liability and Indemnity

Limits on damages, indemnification triggers, and carve-outs for willful misconduct or gross negligence; include insurance requirements.

Data Return and Deletion

Obligations for returning or securely deleting data at termination and proof of destruction or certified deletion processes.

Step-by-Step: How to Complete a Legal DSP Agreement

Follow a consistent sequence to reduce review cycles and ensure required controls are captured before execution.

  • 01
    Prepare Draft: Populate parties, scope, and key dates.
  • 02
    Legal Review: Confirm liability, indemnity, and regulatory language.
  • 03
    Security Review: Validate technical measures and audit rights.
  • 04
    Execute and Record: Obtain authorized signatures and archive final copy.

How Execution, Routing, and Recordkeeping Typically Work

Many organizations use a structured routing workflow to collect approvals and maintain an audit trail from drafting through renewal.

  • Upload Document: Place fields for signature, initials, dates, and optional checkboxes.
  • Assign Reviewers: Route to legal, security, and procurement in defined order.
  • Sign: Authorized parties sign electronically or in wet-ink as required.
  • Store: Archive signed copy with audit trail for retention and audits.

Recommended Digital Workflow Settings for a DSP Agreement

Configure templates and authentication to balance signer convenience with auditability and regulatory requirements.

Field Configuration
Signature Type Audit-trail e-signature with timestamp and IP capture
Authentication Email plus SMS code or two-factor for controllers/critical signers
Access Controls Role-based access to edit vs. view-only for template users
Retention Setting Automate archive to secure storage with version history

Technical and Platform Requirements for Electronic Execution

Ensure the eSignature platform supports required security, evidence capture, and integrations before use.

  • Document Formats: PDF, DOCX, HTML
  • Integrations: Salesforce, NetSuite, Google Workspace
  • Security: AES-256 at rest

Choose a platform that captures an auditable certificate of completion, stores tamper-evident copies, and supports necessary compliance addenda.

Common Contractual Deadlines and Notice Periods to Set

Specify clear timing for renewals, termination, and cure periods to avoid disputes and ensure orderly transition or remediation.

Effective Date and Term:

Define start date and initial term length (e.g., 12–36 months)

Renewal Notice:

Typically 30–90 days' written notice before term end

Termination for Convenience:

Commonly 30–60 days' advance notice

Breach Cure Period:

Often 15–30 days to remedy breaches unless immediate action required

Data Return/Deletion:

Specify timeline (e.g., 30–90 days post-termination) and proof of destruction

Common Mistakes to Avoid When Preparing a DSP Agreement

  • Using vague processing descriptions that allow undefined downstream sharing and increase compliance risk.
  • Failing to include subprocessors or flow-down obligations, leaving controllers with blind spots on data handling.
  • Omitting specific security measures or relying on general phrases like 'industry standard' without measurable controls.
  • Not defining data return or deletion methods, creating uncertainty at contract end and forensic challenges.

Potential Consequences of an Incomplete or Incorrect DSP Agreement

Contractual Liability: Exposure to damages and indemnity obligations for breach of contract.
Regulatory Enforcement: Fines or corrective actions under sectoral laws (e.g., HIPAA, state privacy laws).
Operational Disruption: Interrupted services and costly remediation during data incidents.
Reputational Harm: Loss of customer trust and business impact following public breaches.
Termination Risk: Accelerated contract termination and transition costs.
Evidence Gaps: Inadequate audit trails that weaken defense in disputes or investigations.

How a Standalone DSP Agreement Compares with a Data Processing Addendum

Choose a standalone DSP Agreement for complex service relationships; a DPA addendum may suffice where standard processing clauses are adequate.

Document Type DSP Agreement DPA Addendum
Purpose comprehensive services processing-specific
Scope full commercial terms limited to data handling
Signature Required often appended to main contract
Regulatory Focus broad compliance privacy/security focus

eSignature Vendor Pricing and Feature Snapshot for DSP Agreement Execution

This comparison highlights starting prices and a few key feature distinctions to consider when choosing an eSignature provider for Legal DSP Agreement execution.

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 free trial Varies by plan Varies by plan Varies by plan Varies by plan
Bulk Send Yes (Business Premium) Yes Yes Yes No
Audit Trail Yes Yes Yes Yes Yes
HIPAA Compliant Yes (BAA available) Yes Yes No No
Envelope Cap No cap 100 envelopes/user/year Varies Varies Varies

Frequently Asked Questions About Legal DSP Agreements and Electronic Execution

Answers to common practical and legal questions about drafting, executing, and enforcing a Legal DSP Agreement in the United States.


Need help? Contact support

be ready to get more
Join over 28 million airSlate SignNow users