Agency Contract Terms: What You Need to Know
If you run an agency or work with one, you know how important it is to have a contract in place. But what should you look for in an agency contract? Here are some key terms to consider:
Scope of Work: This section should outline the specific services the agency will provide. It should be as detailed as possible, so both parties have a clear understanding of expectations.
Term: The length of the contract should be clearly stated, along with any renewal options and termination clauses.
Payment: This section should outline how much the agency will be paid, when payment is due, and what happens if payment is late. It should also include any expenses the agency can bill for.
Intellectual Property: If the agency creates any materials for you, this section should outline who owns the intellectual property rights. It should also address the use of any third-party materials.
Confidentiality: This section should outline what information is considered confidential and how it will be protected.
Termination: This section should outline what happens if either party wants to terminate the contract early, including any fees or penalties.
Indemnification: This section should outline who is responsible if the agency’s work is found to be infringing on someone else’s rights.
Limitation of Liability: This section should limit the agency’s liability for any damages to specific amounts or exclude certain types of damages altogether.
Governing Law: This section should outline which state’s laws will govern the contract and which courts will have jurisdiction.
These are just some of the key terms to look for in an agency contract. It’s important to read through the entire contract and ensure that you understand all of the terms before signing. A solid contract can help protect you and your agency, while also ensuring that everyone is on the same page.