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PLAYBOOK TEMPLATES
Advertising Agency Agreement
An Advertising Agency Agreement governs creative and media services provided by an agency to a client. This playbook discusses ownership of deliverables, approval processes, and termination rights.
Termination and Cure Rights
Negotiation strategy
Ensure termination clauses include clear definitions of material breach and reasonable cure periods. Advocate for a structured wind-down process to minimize business disruption.
Negotiate for flexible termination options, such as termination for convenience, with adequate notice periods. Ensure post-termination obligations are clearly defined to protect interests.
Essential elements
1
Material Breach
Defines breach and cure period.
2
Termination for Convenience
Allows termination with notice.
3
Post-Termination Obligations
Outlines duties after termination.
Action framework
ACCEPT
Propose edits if cure periods are too short or notice periods are insufficient.
EDIT
Reject clauses that lack clear definitions of breach or omit wind-down procedures.
ADD
Add clauses if termination rights are absent or unclear.
PRO TIP
Always ensure termination clauses are aligned with industry standards and legal requirements to avoid disputes.
Real-world examples
FAVORABLE
Preferred Termination Clause
"In the event that either party commits a material breach of this Agreement, the non-breaching party may terminate this Agreement by providing written notice to the breaching party. The breaching party shall have thirty (30) days from the receipt of such notice to cure the breach. If the breach is not cured within the specified period, the Agreement shall terminate at the end of the cure period."
NEUTRAL
Standard Termination Notice
"Either party may terminate this Agreement by providing the other party with thirty (30) days written notice."
UNFAVORABLE
Ambiguous Termination Rights
"The Agreement may be terminated at any time without notice or reason."
Alternative scenarios & positions
High-Risk Projects
In high-risk projects, ensure termination clauses include detailed risk mitigation strategies and extended cure periods to manage potential issues effectively.
Long-Term Contracts
For long-term contracts, incorporate periodic review clauses to reassess termination rights and ensure they remain relevant and effective.
Cross-Border Agreements
In cross-border agreements, consider jurisdiction-specific termination requirements and include clauses that address potential international legal conflicts.
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