Advertising Agency Agreement
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Introduction
The practice of entrusting an advertising campaign to an advertising agency is widespread in the business world. When a business decides to entrust this work to an advertising agency, it gives it a task which may sometimes have a decisive impact on its future, hence the importance not only to choose the agency carefully, but also to properly frame the contractual relationship.
The following document provides the legal, operational and financial framework of such an agreement.
Description
The Advertising Agency Agreement is the legal instrument by which a firm, known as the CLIENT, entrusts the design, planning, implementation and dissemination of advertising to promote its products and services to another firm, called the AGENCY, offering a full range of services in the field of advertising.
Use
This document has been designed for companies wishing to use the expertise of an advertising agency to develop their advertising campaign to promote their products and services. The aim of this operation is to help the company establish and strengthen its presence in the marketplace.
Table of Contents
0.00 INTERPRETATION
0.01 Definitions
0.01.01 Activities
0.01.02 Advertising Budget
0.01.03 Agreement
0.01.04 Basic Services
0.01.05 Best Effort
0.01.06 Breach
0.01.07 Change in Control
0.01.08 Communication Fees
0.01.09 Confidential Information
0.01.10 Delegated Services
0.01.11 Distribution Costs
0.01.12 Encumber or Encumbrance
0.01.13 Event of Default
0.01.14 Force Majeure
0.01.15 Fundamental Provisions
0.01.16 Intellectual Property
0.01.17 Legal Representatives
0.01.18 Other Costs
0.01.19 PARTY
0.01.20 Person
0.01.21 Prime Rate
0.01.22 Production Costs
0.01.23 Subsidiary
0.01.24 Subsidiary
0.01.25 Project
0.01.26 Related Person
0.01.27 Special Services
0.01.28 Subcontractor
0.01.29 Travel Costs
0.01.30 Year
0.02 Precedence
0.03 Jurisdiction
0.03.01 Governing Law
0.03.02 Non-compliance
0.04 Miscellaneous
0.04.01 Cumulative Rights
0.04.02 Time and Dates
0.04.03 Financial References
0.04.04 References within Agreement
0.04.05 Gender and Number
0.04.06 Headings
0.04.07 Presumptions
0.04.08 Knowledge
0.04.09 Approval
0.04.10 GAAP
1.00 PURPOSE
1.01 Legal Transaction
1.02 Conditions
1.02.01 Required by AGENCY
1.02.02 Required by CLIENT
1.02.03 Choice
2.00 CONSIDERATION
2.01 Basic Services
2.02 Delegated Services
2.03 Special Services
2.04 Reimbursable Costs
2.05 Cancelled Projects
2.06 Delayed Projects
3.00 TERMS OF PAYMENT
3.01 Basic Services
3.02 Delegated Services
3.02.01 Credit
3.02.02 Reimbursement
3.03 Adjustments
3.03.01 End of Year
3.03.02 Termination
3.03.03 Acknowledgement
3.03.04 Date of Payment
3.04 Special Services
3.05 Reimbursable Costs
3.06 Distribution Costs
3.06.01 Invoice
3.06.02 Commission
3.06.03 Adjustment
3.06.04 Pre-established Rate
3.06.05 Reimbursement
3.07 Production Costs
3.07.01 Invoice
3.07.02 Commission
3.07.03 Commission Allocated by Producer
3.07.04 Discounts
3.08 Interest
3.09 Loss of Term
4.00 SECURITY
4.01 In favour of AGENCY
4.02 In favour of CLIENT
5.00 MUTUAL REPRESENTATIONS AND WARRANTIES
5.01 Status
5.02 Authority
5.03 Binding Agreement
5.04 Canadian Resident
5.05 Commission
5.06 Insurance
5.07 Nominee
5.08 Fundamental Provisions
5.09 Disclosure
6.00 REPRESENTATIONS AND WARRANTIES OF THE AGENCY
6.01 Status
6.02 Authority
6.03 Binding Agreement
6.04 Insurance
6.05 Nominee
6.06 Fundamental Provisions
6.07 Disclosure
7.00 REPRESENTATIONS AND WARRANTIES OF THE CLIENT
7.01 Status
7.02 Authority
7.03 Binding Agreement
7.04 Insurance
7.05 Nominee
7.06 Fundamental Provisions
7.07 Disclosure
8.00 MUTUAL DUTIES AND OBLIGATIONS
8.01 Confidential Information
8.01.01 Undertaking
8.01.02 End of Agreement
8.02 Insurance
8.02.01 Insured Risks
8.02.02 Amount of Coverage
8.02.03 Issuer
8.02.04 Co-insured
8.02.05 No Limitation
8.03 Indemnification
8.03.01 “Loss”
8.03.02 Scope
8.03.03 Procedure
8.03.04 Deductible
8.03.05 Limitation on Claims
8.04 Disclosure of Agreement
9.00 DUTIES AND OBLIGATIONS OF THE AGENCY
9.01 Confidential Information
9.01.01 Undertaking
9.01.02 End of Agreement
9.02 Insurance
9.02.01 Insured Risks
9.02.02 Amount of Coverage
9.02.03 Issuer
9.02.04 Co-insured
9.02.05 No Limitation
9.03 Best Effort
9.04 Program Management
9.04.01 Compliance with Instructions
9.04.02 Legal Verification
9.04.03 Request for Proposals
9.04.04 Specifications
9.04.05 Reimbursement
9.05 Liability
9.05.01 Events
9.05.02 Insurance
9.06 Conflict of Interests
9.07 Bookkeeping
9.07.01 Records
9.07.02 Audits
9.08 Intellectual Property
9.09 Invoicing
10.00 DUTIES AND OBLIGATIONS OF THE CLIENT
10.01 Exclusivity
10.02 Collaboration
10.03 Advertising Budget
10.04 Non-solicitation of Staff
10.05 Liability
10.05.01 Negligence
10.05.02 Services
10.05.03 Trade-marks
10.05.04 Returns
10.05.05 Third Parties
10.05.06 Representations and Warranties
10.06 Diversion
11.00 SPECIAL PROVISIONS
11.01 Assignment
11.01.01 Prohibition
11.01.02 Effect of Breach
11.01.03 Exception
11.02 Force Majeure
11.02.01 No Default
11.02.02 Duty
11.02.03 Rights of Other PARTY
11.03 Relationship
11.03.01 Independent Contractors
11.03.02 No Control over Performance
11.03.03 No Authority to Bind
11.04 Further Assurances
11.05 Other Remedies
11.05.01 Choices
11.05.02 No Limitations
11.06 Prescription
11.07 Intellectual Property
12.00 GENERAL PROVISIONS
12.01 Notice
12.02 Dispute Resolution
12.02.01 Good Faith Negotiations
12.02.02 Mediation
12.02.03 Arbitration
12.03 Election
12.04 Counterparts
12.05 Amendment
12.06 Waiver of Rights
12.07 Electronic Transmission
12.08 Language
13.00 TERMINATION
13.01 Mutual Consent
13.02 Unilateral Termination
13.03 Without Notice
13.04 Prior Notice
13.05 Change of Control
13.06 Consequences of Termination
13.06.01 Payment
13.06.02 Return
14.00 EFFECTIVE DATE
14.01 Retroactivity
14.02 Execution
14.03 Deferral
15.00 DURATION
15.01 Probationary or Trial Period
15.02 Initial Term
15.03 Renewal
15.03.01 First Renewal
15.03.02 Subsequent Renewals
15.04 Survival
15.05 Non Renewal
16.00 SCOPE
SCHEDULE A - EXCERPT OF A RESOLUTION OF THE AGENCY
SCHEDULE B - EXCERPT OF A RESOLUTION OF THE CLIENT
SCHEDULE 0.01.04 – BASIC SERVICES DESCRIPTION
SCHEDULE 0.01.27 – SPECIAL SERVICES PRICES
SCHEDULE 0.01.29 – TRAVEL COSTS
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