Advertiser & Agency Agreement
Advertiser and Agency Agreement
________________________, referred to as ADVERTISER, and ________________________, referred to as AGENCY, agree:
EMPLOYMENT OF AGENCYADVERTISER hereby permits the agency to render on an exclusive basis, and agency agrees to render to ADVERTISER, all the services customarily performed by an advertising agency within such budgets as ADVERTISER may set from time to time.
AGENCY’S COMMISSIONIn consideration of the services rendered by the agency to advertiser, agency shall receive an amount equal to ____% of the gross charges of media advertising placed therewith by agency pursuant to this contract.
The following additional services will be rendered to ADVERTISER for the compensation stated:
______________________________________________________________
BILLINGAgency shall bill advertiser every 30 days and all bills shall be due and payable by advertiser within 10 days from the date of receipt with interest at the highest legal rate due thereafter.
DISCOUNTSAgency shall pass along all discounts it may receive when from the media to the advertiser.
ACCOUNTING UPON TERMINATIONOn termination of this contract by either party, advertiser shall pay agency the cost of the material finished or in preparation, which advertiser has previously approved. Agency shall also be entitled to receive full commissions on any advertising that it has prepared and is eventually used by the advertiser. When all the agency’s invoices are paid, agency shall deliver to advertiser all materials in its possession that were paid for by the advertiser. Advertiser shall assume Agency’s responsibility for all outstanding contracts made on the advertiser’s behalf.
NON-DISCLOSUREFrom time to time ADVERTISER may provide certain confidential information to AGENCY regarding its business and prospects, which are trade secrets. As to such materials, ADVERTISER shall conspicuously mark the same with the term “CONFIDENTIAL” or “TRADE SECRET” and if not disclosed in writing, the same shall be promptly reduced to writing. AGENCY agrees not to disclose such confidential information.
Dated: _____________________________
_________________________________________
By Advertiser
_________________________________________
By AgencyAdvertiser & Agency Agreement
Review ListThis review list is provided to inform you about this document in question and assist you in its preparation. This formalizes the agreement between advertiser and agency. It provides clarity as to payments as well as discounts the advertiser is entitled to.
1. Make multiple copies. Give one original to each party.
2. You can adapt this agreement to other advertising and agency specialty agreements by limiting the area of the agreement (e.g., web banner ads; billboards; travel magazines; and so on and so on).
Frequently Asked Questions
What is an advertiser and agency agreement?
An advertiser and agency agreement is a contract between an advertiser and an advertising agency that outlines the terms of their working relationship. In this agreement, the advertiser permits the agency to render advertising services on an exclusive basis, and the agency agrees to provide all services customarily performed by an advertising agency within budgets set by the advertiser. The contract also covers compensation, billing, discounts, and accounting upon termination.
What does exclusive basis mean in an advertising agency agreement?
In this agreement, exclusive basis means that the advertiser permits the agency to render all services customarily performed by an advertising agency on an exclusive basis. This likely means the advertiser cannot engage another agency for the same services during the contract term. The agency agrees to render such services within budgets set by the advertiser from time to time.
How is the advertising agency compensated under this agreement?
The agency receives compensation equal to a specified percentage of the gross charges of media advertising placed by the agency on behalf of the advertiser. The exact percentage is left blank in the agreement to be filled in by the parties. Additionally, the agreement may include other services for a stated compensation, which would be listed in the contract.
What are the billing and payment terms in an advertiser and agency agreement?
The agency is required to bill the advertiser every 30 days. All bills are due and payable by the advertiser within 10 days from the date of receipt. If payment is late, interest at the highest legal rate applies thereafter.
How are discounts handled in this advertising agency agreement?
The agreement states that the agency shall pass along all discounts it may receive from the media to the advertiser. This ensures that any media discounts benefit the advertiser. The agency is obligated to transfer such discounts as part of the contractual arrangement.
What happens to accounting upon termination of the advertising agency agreement?
Upon termination of the contract by either party, the advertiser is required to pay the agency according to the accounting provisions. The agreement specifies that the advertiser shall pay the agency, though the exact terms are not detailed in the provided text. This likely includes any outstanding amounts owed for services rendered.
Can either party terminate the advertiser and agency agreement?
Yes, the agreement allows for termination by either party. The contract includes a section titled 'Accounting Upon Termination,' which indicates that termination can occur. Upon termination, the advertiser must pay the agency as per the agreement's terms.
What services does the agency provide under this agreement?
The agency agrees to render all services customarily performed by an advertising agency. These services are to be provided within budgets set by the advertiser from time to time. The agreement may also list additional services for separate compensation.
What is the commission structure for the advertising agency?
The agency receives a commission equal to a certain percentage of the gross charges of media advertising placed by the agency. The percentage is left blank in the agreement to be agreed upon by the parties. This commission is in consideration of the services rendered by the agency to the advertiser.
What interest rate applies to late payments under this agreement?
The agreement states that interest at the highest legal rate applies to late payments. This means that if the advertiser fails to pay within 10 days from receipt of the bill, interest will accrue at the maximum rate permitted by law. The exact rate is not specified in the contract.
