Entrusting the creating, planning and implementing of an advertising campaign to an advertising agency is common practice in the business world. It is a decision, however, that can have a decisive impact on the future of that business, which is why it is important to not only choose the agency carefully, but also to properly define the contractual relationship.

This template provides the legal, financial and operational framework of such an agreement.

This template can be used by businesses that wish to use the expertise of an advertising agency to develop their advertising campaign to promote their products and services, and thereby help the company to establish and strengthen its presence in the marketplace.

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 Efforts
0.01.06 Breach
0.01.07 Change in Control
0.01.08 Communication Costs
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 Law
0.01.18 Legal Representatives
0.01.19 Ordinary Course of Business
0.01.20 Other Costs
0.01.21 PARTY
0.01.22 Person
0.01.23 Prime Rate
0.01.24 Production Costs
0.01.25 Project
0.01.26 Related Person
0.01.27 Special Services
0.01.28 Subcontractor
0.01.29 Subsidiary
0.01.30 Travel Costs
0.01.31 Year
0.02 Precedence
0.03 Jurisdiction
0.03.01 Governing Law
0.03.02 Non-Compliance
a) Severability
b) Substitute Provision
0.04 Miscellaneous
0.04.01 Cumulative Rights
0.04.02 Dates and Time
a) Time of the Essence
b) Computation of Time
c) Delays
0.04.03 Financial References
0.04.04 Cross-References
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 Accounting Standards
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 Election
2.00 CONSIDERATION
2.01 Basic Services
2.01.01 Annual Fee
2.01.02 Annual Adjustment
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 Refund
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 Refund
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
5.10 Legal Proceedings
6.00 REPRESENTATIONS AND WARRANTIES OF AGENCY
6.01 Status
6.02 Authority
6.03 Binding Agreement
6.04 Canadian Resident
6.05 Commission
6.06 Insurance
6.07 Nominee
6.08 Fundamental Provisions
6.09 Disclosure
6.10 Legal Proceedings
7.00 REPRESENTATIONS AND WARRANTIES OF CLIENT
7.01 Status
7.02 Authority
7.03 Binding Agreement
7.04 Canadian Resident
7.05 Commission
7.06 Insurance
7.07 Nominee
7.08 Fundamental Provisions
7.09 Disclosure
7.10 Legal Proceedings
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 Additional Named 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 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 Additional Named Insured
9.02.05 No Limitation
9.03 Best Efforts
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 Interest
9.07 Bookkeeping
9.07.01 Records
9.07.02 Audits
9.08 Intellectual Property
9.08.01 Assignment
9.08.02 Exception
9.09 Invoicing
10.00 DUTIES AND OBLIGATIONS OF CLIENT
10.01 Exclusivity
10.02 Collaboration
10.03 Advertising Budget
10.04 Non-Solicitation of Personnel
10.05 Liability
10.05.01 Negligence
10.05.02 Services
10.05.03 Trademarks
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 Election
11.05.02 No Limitations
11.06 Prescriptive Period
11.07 Intellectual Property
11.08 Pre-Incorporation Agreement
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
a) Notice
b) Reply
c) Appointment of a Third Arbitrator
d) Subcontracts
e) Confidentiality
f) Hearing
g) Ruling
h) Costs
i) Supplementary Rules
12.03 Election
12.04 Counterparts
12.05 Amendment
12.06 Non-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 in Control
13.05.01 Continuation of Certains Obligations
13.05.02 Payment
13.05.03 Return
14.00 EFFECTIVE DATE
14.01 Retroactive
14.02 Upon Execution
14.03 Deferral
15.00 DURATION
15.01 Initial Term
15.02 Renewal
15.02.01 First Renewal
15.02.02 Subsequent Renewals
15.03 Continued Effect
15.04 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 – DESCRIPTION OF BASIC SERVICES
SCHEDULE 0.01.27 – SPECIAL SERVICES PRICES
SCHEDULE 0.01.30 – TRAVEL COSTS