Reading time: 3 minutes

Parts 1 to 3 of this series covered a majority of the commercial items that need to be considered when entering into a creative agency agreement. There are, however, several housekeeping items which also need to be considered which will be covered in the final part of this series.

Termination

Under what conditions can this agreement be terminated?

Normally, if it is an ongoing arrangement, there will be a clause setting out the notice period required if one party wants to terminate the agreement. Depending on the size of the client company, the standard notice period can range from 20 business days to 3 months. This needs to be agreed between the parties.

You may also wish to set out a number of circumstances in which one party can terminate the agreement immediately. This may include, for example:

  • a material breach of a provision of the creative agency agreement;
  • failure by the client to pay the creative agency’s invoices over a significant period of time;
  • consistent failure by the creative agency to provide the services to the client’s satisfaction; or
  • a party entering into liquidation/administration.

Dispute resolution

When there is a dispute, the last thing that the parties need is a dispute over how to resolve a dispute. To avoid this, a well-drafted agreement will have a detailed dispute resolution procedure.

A standard dispute resolution clause will usually start with requiring the party bringing the complaint to provide the other party with a dispute notice setting out all the matters in dispute. Then, if the dispute cannot be resolved after, for example, two weeks, the parties can then refer the matter to a mediator. If the parties cannot agree on a mediator, either party can request a third party to appoint a mediator – this third party is usually the relevant law society.

Most dispute resolution clauses will not allow a party to commence court proceedings until the parties have attempted to resolve the dispute through mediation. This is because court proceedings are timely and costly for both parties, and more often than not, result in an irreparable working relationship.

Notices

Throughout the agreement, there will be requirements on one party to provide the other with notice in writing. The notices clause will set out how notices are to be communicated, for example, by post, email, or fax, and when such notices are deemed to have been delivered. This is important to help the parties avoid dispute over whether or not notice was given and received.

Conclusion

Creative agency agreements are generally quite lengthy and complex. If you require a creative agency agreement, we recommend that you have this drafted professional by an experienced contract lawyer. Alternatively, if you are entering into a creative agency agreement, we recommend that you have this reviewed so that you understand all your rights and obligations under it. Once an agreement is signed, it is difficult to negotiate changes to the terms and you could be stuck with an agreement that is highly unfavourable to you.

Webinars

How Franchisors Can Avoid Misleading and Deceptive Conduct

Wednesday 18 May | 11:00 - 11:45am

Online
Ensure your franchise is not accused of misleading and deceptive conduct. Register for our free webinar today.
Register Now

New Kid on the Blockchain: Understanding the Proposed Laws for Crypto, NFT and Blockchain Projects

Wednesday 25 May | 10:00 - 10:45am

Online
If you operate in the crypto space, ensure you understand the Federal Government’s proposed licensing and regulation changes. Register today for our free webinar.
Register Now

How to Expand Your Business Into a Franchise

Thursday 26 May | 11:00 - 11:45am

Online
Drive rapid growth in your business by turning it into a franchise. To learn how, join our free webinar. Register today.
Register Now

Day in Court: What Happens When Your Business Goes to Court

Thursday 2 June | 11:00 - 11:45am

Online
If your business is going to court, then you need to understand the process. Our free webinar will explain.
Register Now

How to Manage a Construction Dispute

Thursday 9 June | 11:00 - 11:45am

Online
Protect your construction firm from disputes. To understand how, join our free webinar.
Register Now

Startup Financing: Venture Debt 101

Thursday 23 June | 11:00 - 11:45am

Online
Learn how venture debt can help take your startup to the next level. Register for our free webinar today.
Register Now

About LegalVision: LegalVision is a commercial law firm that provides businesses with affordable and ongoing legal assistance through our industry-first membership.

By becoming a member, you'll have an experienced legal team ready to answer your questions, draft and review your contracts, and resolve your disputes. All the legal assistance your business needs, for a low monthly fee.

Learn more about our membership

Need Legal Help? Submit an Enquiry

If you would like to get in touch with our team and learn more about how our membership can help your business, fill out the form below.

Our Awards

  • 2020 Innovation Award 2020 Excellence in Technology & Innovation Finalist – Australasian Law Awards
  • 2020 Employer of Choice Award 2020 Employer of Choice Winner – Australasian Lawyer
  • 2020 Financial Times Award 2021 Fastest Growing Law Firm - Financial Times APAC 500
  • 2020 AFR Fast 100 List - Australian Financial Review
  • 2021 Law Firm of the Year Award 2021 Law Firm of the Year - Australasian Law Awards
  • 2019 Most Innovative Firm - Australasian Lawyer